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So a company should ensure the accuracy and integrity of its financial statements and for that reason a company needs to audit its financial statements.
Auditing is the process of investigating the financial statements to determine their fairness and accuracy.
For this purpose a company hires a firm of CPAs(Certified Public Accountants) or external auditors who are independent of the company itself. Their job is to make sure that the financial statements prepared by the company are reliable, complete, in conformity with the GAAP and in no means misleading.
As mentioned earlier, the financial statements show how strong or weak a company is financially...
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Common topics in this essay:
- Financial Statements
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- The Four Financial Statements
- Frauds In Financial Statements
- comparison of Medtronic's financial statements to Baxter's financial statements
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