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Part I: A well-known, simple characterization that gets at the very essence of the purpose of auditing includes the following phrase: Auditing is the difference
Part I:
A well-known, simple characterization that gets at the very essence of the purpose of auditing includes the following phrase: Auditing is the difference between management telling the truth, and users believing it.
- What does this phrase mean to you?
- Have you ever told the truth and had someone refuse to believe it?
- How does this phrase relate to the usefulness of the auditor report?
Part II:
There are different reporting deadlines for U.S. public companies. Please refer to the textbook for more details and answer the following questions:
- Does this difference seem fair to you from a user perspective?
- What reasons do you think that the SEC has for allowing nonaccelerated filers to have more time to provide these disclosures?
- All else held equal, would you prefer to invest in a company that provides disclosures after 60 days, or one that provides disclosures after 90 days?
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