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Where is the amount of merchandise inventory disclosed in the financial statements?
Amount of merchandise inventory is disclosed at the bottom of the financial statement under balance sheet.
Who is responsible for preparation and integrity of the financial statements?
board of directors
Why do auditors include the statement these financial statements are the responsibility of the company's directors?
Auditors include the statement that the financial statements are the responsibility of the company's directors to clarify the division of responsibility between management and the auditors. This emphasizes that it is the directors' duty to ensure the accuracy and completeness of the financial statements. By making this distinction, auditors highlight that their role is to provide an independent assessment of the statements rather than guaranteeing their accuracy. This statement also serves to reinforce the accountability of management in financial reporting.
What are the roles played by directors in terms of the published statements of a company?
Directors are responsible for overseeing the preparation and approval of a company's published financial statements to ensure they accurately reflect the company's financial position. They also play a key role in ensuring the statements comply with relevant accounting standards and regulations. Additionally, directors are responsible for reviewing the statements for accuracy and providing assurances to shareholders and other stakeholders regarding the company's financial performance.
Why company directors fees disclosure is important?
all types of accounting information disclosed in financial statements are important. it is legal and mandatory in many countries . also the ISAAB board under IAs 700 the report formats dictates a lot of expressions and disclosures required .
Who must prepare financial statements?
Business firms, particularly those with stockholders, must prepare honest and conservative financial statements.
What is the financial remuneration?
Payment of money.
When are contingent liabilities shown on the balance sheet?
Contingent liabilities are shown on the balance sheet when they are probable and the amount can be reasonably estimated. If the likelihood of the liability occurring is remote, it is not recorded in the financial statements but may be disclosed in the notes. If the liability is only reasonably possible, it may be disclosed but not recognized on the balance sheet. This approach ensures that financial statements provide a true and fair view of the company's financial position.
Who is an internal user of financial statements?
Accounting information is presented to internal users in the form of management accounts, budgets, forecasts andÊfinancial statements. External users are communicated accounting information in the form of financial statements. These users are creditors, tax authorities, investors, etc..
Is preferred dividends in arrears a current liability?
Preferred dividends in arrears are not considered a current liability. Instead, they represent a potential obligation that may need to be paid in the future but do not require immediate settlement. While they are disclosed in the financial statements, they are typically classified as a non-current liability until declared by the board of directors.
Is depreciation schedule required to be disclosed in the notes to financial statements?
Yes depreciation schedule is required to disclose for the better understanding for the reader of the books of accounts.
Why must a auditor stipulate the directors responsibilities in the audit report?
An auditor must stipulate the directors' responsibilities in the audit report to clarify the scope and limitations of the audit. It establishes that the directors are responsible for the preparation and presentation of the financial statements, ensuring transparency regarding their role in maintaining accurate records and internal controls. This delineation helps users of the financial statements understand the context of the auditor's opinion and reinforces the accountability of the directors. Additionally, it provides a framework for assessing the overall governance and management of the entity.
