ACCTG 101 Lecture Notes - Lecture 32: Financial Statement, Tertiary Sector Of The Economy, Lexisnexis
Document Summary
Elected by shareholders to represent their interests, is responsible for maintaining. They oversee basically all activity such as audit, accounting, and financial the integrity of the company"s financial reports reporting requirements. An unqualified (clean) audit opinion is the auditors" declaration that the financial statements are fair presentations in all material respects in conformity with ifrs. By signing an unqualified opinion, the audit firm assumes part of the financial responsibility. Subjecting the company"s statements to independent verification reduces the risk. As a consequence, rational investors and lenders should lower the rate of that the company"s condition is misrepresented in the statements return (interest) they charge for providing capital. People think the communication process between companies and financial statement users as a simple process of making the report available to individual shareholders who read and make investment decisions. Information goes from management either straight to users, or to information intermediaries and then users. Management (primary responsibility): includes ceo, cfo, and accounting staff.
