Auditors ensure that management has followed the gaap

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Auditors ensure that management has followed the GAAP for companies’ financial statements and they help play a role in investors and creditors decisions by adding credibility. 10. Understand the importance of internal control Attempt to eliminate the opportunity of fraud. Internal controls represent plans to: safeguard the company's assets and improve the accuracy and reliability of accounting info. Collusion : 2 or more people acting together to circumvent internal controls Enron/WordCom resulted in Sarbaue-Oxley Act of 2002-aka Publim Company accounting reform and investor protection act. Applies to all companies with SEC. Guidelines related in internal control and auditor-client relations. Cooking the books- Purposely providing misleading financial information to investors and creditors. Auditors: trained individuals hired by a company as an independent party to express a professional opinion of the extent to which financial statements are prepared in compliance with GAAP and are free of material misstatement. Roles are to help ensure
mang has applied GAAP in financial statements and plays a major role in investors and creditors decisions by adding credibility to the financial statements Occupational fraud: use role for personal enrichment

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