Conway computers revenues and prots increased by 25

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Unformatted text preview: provided capital for expansion. Conway Computer’s revenues and profits increased by 25 percent in each of the last two years, and the Steinbuker brothers and the venture capital firm decided to take the company public through a stock sale. However, they knew that the company’s financial statements needed to be audited by a reputable public accounting firm before a registration statement could be filed with the Securities and Exchange Commission and in order for investors to trust the stock offering. The company hired a major public accounting firm to perform its audits and the company successfully sold stock to the public. These situations show the importance of auditing to both private and public enterprise. By adding an audit to each situation, the users of the nancial statements have additional assurance that the nancial statements report honestly and accurately, and they will be more willing to rely on those statements. Auditors can also provide valuable assurance for operating information, information systems reliability and security...
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