Full Answer
How do I identify the Auditor of a publicly traded company?
The best way to identify the auditor of a publicly traded company is to check the company's most recent filings using our EDGAR database of corporate filings. You'll find the identity of the company's auditor in its annual report on Form 10-K.
Who prepares a company's financial statements?
Who Prepares a Company's Financial Statements? A company's management has the responsibility for preparing the company's financial statements and related disclosures. The company's outside, independent auditor then subjects the financial statements and disclosures to an audit.
Can a small firm Audit a publicly traded company?
D) Small firms are prohibited by the SEC from auditing publicly traded companies. : D Terms: Characteristics of a small firm Diff: Moderate Objective: LO 2-1
Who subjects the financial statements and disclosures to audit?
The company's outside, independent auditor then subjects the financial statements and disclosures to an audit.
Who compiles the financial statements of publicly traded companies?
accountantAn accountant compiles the financial statement, but it is not required to verify or confirm the numbers or analyze the statement for accuracy. As a matter of ethics, the accountant who is appointed to compile the statement must be familiar with the company and its business processes.
Who is responsible for preparation of financial statements?
A company's management has the responsibility for preparing the company's financial statements and related disclosures. The company's outside, independent auditor then subjects the financial statements and disclosures to an audit.
Who monitors the company's financial statements?
Directors prepare financial statements; audit committees monitor the integrity of financial information. 5.
Which of the following is required by law for all publicly traded firms?
(Financial statements consist of three separate but interrelated reports: the balance sheet, the income statement, and the statement of cash flows. These statements are required by law for all publicly traded companies, but they are vital management tools for every company, no matter how large or small.)
Who can perform a financial statements audit?
The audit can be conducted internally by employees of the organization or externally by an outside Certified Public Accountant (CPA) firm.
Who approves audited financial statements?
DirectorsA Directors' Resolution to Approve Company's Financial Statements is a resolution passed by the directors of a company to approve the audited Financial Statements and the Directors' Statement for a particular financial year before these statements are presented to the Shareholders of the company.
Who can audit a company?
Chartered Accountants in practice(1) A person shall be eligible for appointment as an auditor of a company only if he is a chartered accountant in practice. (2) Where a firm is appointed as an auditor of a company, only the partners who are Chartered Accountants in practice shall be authorised by the firm to act and sign on behalf of the firm.
Who reports to auditors?
07 The auditor's report must be addressed to the shareholders and the board of directors, or equivalents for companies not organized as corporations. The auditor's report may include additional addressees.
Do internal auditors prepare financial statements?
For many audit engagements, the auditors prepare financial statements. It is a common misconception that this is a part of the audit. However, preparation of financial statements is an additional service that is not a part of the audit.
What kind of financial information is a publicly traded company required to provide to its stockholders?
Publically-traded companies are required to provide adequate financial information to their shareholders. Information generally is provided through financial reports that a company periodically produces, which include a balance sheet, an income statement, a statement of cash flows, and a statement of retained earnings.
Do public companies have to disclose financial statements?
Federal regulations require the disclosure of all relevant financial information by publicly-listed companies. In addition to financial data, companies are required to reveal their analysis of their strengths, weaknesses, opportunities, and threats.
Who has the responsibility for preparing financial statements in accordance with generally accepted accounting principles?
The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards.