Tax Planning

In: Business and Management

Submitted By potola
Words 695
Pages 3
What are Audited Financial Statements, samples and Templates?
Posted on January 7, 2012
Financial statements are one of the most important aspects of a business. There are several types of financial statements, with the three main ones being receipts and payments account, balance sheet and expenditure account. Forming and managing such accounts require a high level of knowledge and expertise, and that includes the analysis of financial states. Let’s take a quick look at financial statements of companies.
An Overview of Financial Statements
Financial statements, as mentioned below, are mainly of three types. Each of these types of statements- balance sheet, income and expenditure account, and receipts and payments account, are formulated by the company. At the end of the fiscal year, the reports are sent to auditors and then checked. If the company runs a number of entities, then it forms financial statements that applicable to the group of entities under the control of the parent entity. This kind of a financial statement is known as consolidated financial statements. The principles and procedures for preparing and presenting such financial statements are different from that of a single company’s financial statement.
Problems and Issues in Financial Statements
There are several common issues related to financial statements that necessitate the need for an audit report. In a receipts and payments statement, a common issue seen is that of loan transaction omissions. These transactions are supposed to be included, but many accountants use the balance sheet and income and expenditure account to prepare the receipts and payment account, which omit such transactions.
Audited financial statements are considered by many to be unnecessary, but the truth is that it can have the rubber stamp of an auditor is the ultimate certificate of respectability in finances.…...

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