12 - creditors Auditor’s Report • Companies hire...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Comprehensive Income Change in stockholders’ equity from all non-owner transactions Net Income plus: Unrealized gains (losses) on available-for-sale investments Foreign currency translation adjustments Not included in net income or EPS calculations Prior Period Adjustments Correction of an accounting error from a previous period Related revenue or expense item has been closed into Retained Earnings Beginning retained earnings is adjusted for the amount of the error Understand managers’ and auditors’ responsibilities for the financial statements Internal controls over financial reporting in accordance with GAAP Standard for preparing financial statements Designed to produce relevant and reliable information for investors and
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: creditors Auditor’s Report • Companies hire Certified Public Accountants (CPAs) to examine financial statements Examination is called an external audit CPAs are to independent of the company they are auditing • CPA firms issue audit reports Provide opinion if financial statements are in accordance with GAAP Types of Audit Reports Unqualified Clean opinion; Statements are fairly presented Qualified “Except for” opinion; Statements are reliable except for one or more items Adverse Statements are unreliable and not in accordance with GAAP Disclaimer No opinion; auditor was unable to form an opinion...
View Full Document

This note was uploaded on 06/14/2011 for the course ACCOUNTING 23020 taught by Professor Na during the Spring '11 term at Kent State.

Ask a homework question - tutors are online