Who is the most important user of an auditors report on a companys financial statements: company management,
Question:
Who is the most important user of an auditor’s report on a company’s financial statements: company management, the company’s shareholders, or the company’s creditors? Briefly explain your rationale and indicate how auditors should resolve potential conflicts in the needs of the three parties.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
All three of these parties are important users Arguments can be made for each group as follows Shareholders They are owners of the organization and th...View the full answer
Answered By
Vikash Verma
Hi,
I have completed my Masters in Management from Indian Institute of Management, Bodh Gaya which is India's premier B-School. I was among the top 3 percentile (97 percentile) in the Common Admission Test. I have been mentoring MBA students for their doubts and providing case-based solutions. I am a general management degree holder and have industrial experience in marketing, corporate finance, and operations. This gives me an advantage of looking at a problem from industry perspective and give solution accordingly.
0.00
0 Reviews
10+ Question Solved
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
Question Posted:
Students also viewed these Auditing questions
-
A company prepares financial statements in order to summarize financial information. Below are a list of financial statements and a list of descriptions. Financial Statements a. Balance sheet b....
-
The sales budget is the most important budget. Do you agree or disagree? Explain your answer.
-
Explain why the executive summary is the most important section of any business plan.
-
A firm has initial fund of $800. The market rate of return is 12%. The firm has identified good investment opportunities to invest $640 at an average 25 per cent rate of return. How much dividend...
-
Why is the grade of a bond in a grinding wheel important?
-
A sprinter with a mass of 65 kg reaches a speed of 10 m/s during a race. Find the sprinters linear momentum.
-
Mr Xo owns a retail shop. You prepare annually the profit and loss account and balance sheet from records consisting of a bank statement and a file of unpaid suppliers and outstanding debtors. The...
-
Do you believe Deloitte & Touche should have approved Livents decision to record the $12.5 million naming rights payment as revenue during the third quarter of 1997? Defend your answer. What broad...
-
Walton Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men's department has a sales...
-
Handy Howard's Incorporated, is a student co-op. Handy Howard uses a perpetual Inventory system, The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash...
-
What are users interests in reports on internal control over financial reporting? Identify the factors that influenced congress in developing Section 404 of the Sarbanes-Oxley Act that requires...
-
How does an audit enhance the quality of financial statements and its reports on internal control? Does an audit ensure a fair presentation of a companys financial statements or that internal control...
-
You saw in Chapter 6 that a companys management selects the percentage to be used when computing bad debt expense. You noted in Chapter 7 that management is allowed to choose the method for valuing...
-
7. Derive the power spectral density of a. Polar non-return to zero coding b. Unipolar return to zero coding Starting with where we left off in class: _|P(), S, (f)= -ReJ2nfT T 8. Use delta...
-
Applying Differential Analysis to Equipment Replacement Decision TaylorMade - Adidas Golf Company a subsidiary of Adidas, manufactures golf clubs using adjustable weight technology or AWT. Suppose a...
-
Solve the equation 10-2+x=4. The only solution is a
-
Trademark law ARTICLE TITLE: Should We Be Able to Reclaim a Racist Insult as a Registered Trademark? Links to an external site. , N.Y. Times (Jan. 17, 2017). ABOUT DISPARAGING FACTS OF THE CASE: By...
-
Simplify. - (7xy + 5x y = 3y) + (-xy - 4xy 2 + 2 )
-
What are the two major types of tests that have been performed to test the validity of the CAPM? (beta stability; slope of the SML) Explain their results.
-
An investor sells a European call on a share for $4. The stock price is $47 and the strike price is $50. Under what circumstances does the investor make a profit? Under what circumstances will the...
-
Find the antiderivative by using areas in Problems 9-22. \(\int(1+8 x) d x\)
-
What factors create a demand for an independent external audit?
-
Refer to the Auditing in Practice feature Who are the Leaders of the PCAOB? Why is there a requirement that no more than two of the board members are CPAs?
-
Access the SEC home page at www.sec.gov. a. Refer to the Auditing in Practice feature Locating Enforcement Actions on the SEC Web Site. Follow the directions and locate an enforcement action taken...
-
Required: Following Simplicity Financial and Business Advisory Group Pty Ltd policies and procedures prepare the following: Task 1 Financial statement analysis The client needs a review of financial...
-
SCC Company reported the following for the current year.Net sales$ 57,000Cost of goods sold47, 200Beginning balance in inventory2,900Ending balance in inventory8,960Compute (a) inventory turnover and...
-
You are an assistant financial consultant for Simplicity Financial and Business Advisory Group PtyLtd, and you have been notified the client converted their business to a public company PTCG Ltd....
Study smarter with the SolutionInn App