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What external sources of information used by the client should be considered in the examination of prospective financial statements?
EncofBizandFinance
reports on new information; digital, electronic, and mechanical technology; reports on new scientific developments; micro and macroeconomic forecasts; and reports on present and proposed legislation
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∙ 13y ago
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What role do public accountants play in the examination of financial forecasts and projections?
The accountants who examine such statements must consider whether the sources of information used by the client are sufficient to support the assumptions reflected in the prospective statements.
What internal sources of information must accountants consider in the examination of prospective financial statements?
strategic plans, budgets, contractual agreements, purchase and sale agreements and commitments, intellectual property rights such as copyrights and patents, royalty and commission agreements
What does compilation of prospective financial statements by public accountants involve?
the service of preparing the statements in whole or part from information and significant assumptions provided by the responsible party, usually a member of management
What cost elements of the entity's doing business must be considered in the preparation of prospective financial statements?
payroll and benefits, needed employees, raw materials, products the entity sells, freight or shipping, and advertising.
What factors related to the economy must be considered in the preparation of prospective financial business statements?
What are the economic conditions in the country?What are critical economic trends?Is the economy inflationary, deflationary, or stable?What is the trend with regard to labor availability?
What factors must be considered in the preparation of prospective financial statements?
Factors related to the specific entity; Factors related to the industry; Factors related to the market; Factors related to the economy; Factors Related to the Specific Entity
What factors related to the industry must be considered in the preparation of prospective financial business statements?
Is the industry one in which companies are very competitive?Are competitive industries emerging?Is obsolescence emerging within the industry?Are there regulatory considerations and requirements?
What is the definition of auditing?
Auditing is the examination and evaluation of financial statements to check financial accuracy.
Mission and vision statements of various companies?
The purpose of mission and vision statements of various companies is to show prospective customers what their vales and aims are in so far as to what they promise they can deliver. Most companies will have their mission and vision statements visible on their website.
Only statements that are voluntarily offered by witnesses are admissible in court?
Wrong. If witnesses could only offer voluntary statements, then there would be no need for cross-examination by the opposing side.
What provide the nessary information to determine the liquidity of a company?
finanical statements finanical statements
Impact of finance on financial statements?
Finance are the reason for financial statements. Without financial information, financial statements can't be created. Investors use this information to make decisions about investing in a business.
