It depends on the client, the size of the client and on who is requesting them. A set of financial statements for a public entity (SEC traded stock) will have far greater and more detailed required disclosures than will a closely held corporation, as will a governmental or non-profit entity. Governmental and non-profit entities have similar requirements, but typically governmental entities will have many times the required information that a non-profit organization would. Again this is all predicated upon size, industry, ownership, etc. As an example Sears, Inc. and John Doe's Hardware Store, Inc. are going to have different reporting requirements from lenders and governing bodies. Sears has the SEC, stockholders, lending companies, bond issues, etc to deal with and each will have detailed requirements as to what they need included in the financial statements, which will be required to be audited. John Doe only has to deal with himself and perhaps a lender - who will probably be satisfied with a compiled Balance Sheet and Income Statement. GENERALLY, a balance sheet and an income statement will be prepared, and, depending on the level of the engagement a statement of cash flows and footnotes. But as I said above... it depends.
financial statements are prepared by accountants to submit to the government for taxation purposes.
Adjusting Trial Balance
yes
Lifetime operations.
An audit report is a certification that financial statements are prepared according accepted accounting standards. In case auditors disagree with any issue and state their opinion of the issue in the audit report it is called qualified audit report.
Accounting standards ensures that financial statements are prepared whereever in the world is same and information provided on it is comaprable and readable for all kind of users.
hen a large company acquire one or more small companies then acquiring company is called the parent company and acquired companies are called subsidiary companies so when the financial statements of parent company and subsidiary companies are prepared in one financial statement altogether those financial statements are called consolidated financial statements.
Financial Statements
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity. It is a formal report prepared by accountants for external stakeholders. On the other hand, a worksheet is an internal document used by accountants to organize and record adjusting entries and prepare financial statements. It is a tool to facilitate the preparation of financial statements and is not typically shared with external parties.
Subsidiary companies are also part of group of companies so parent company is required to show the financial statements of group as a whole so that's why consolidated financial statements are prepared
The financial statements vary according to the type and scale of entity, however following statements can be found in any entity:Statement of Financial Position - Balance SheetStatement of Financial Performance - Profit & Loss - Income StatementDepreciation ScheduleStatement of Changes to EquityCash Flow StatementNotes to the Financial StatementDirectors ReportDirectors DeclarationHope this helps!
auditing is the examination of financial statements by an independent certified public accountant as to the fairness with which the financial statements are prepared.