BA 3301 Lecture Notes - Lecture 62: Pricewaterhousecoopers, Income Statement, Financial Statement
Document Summary
These quesions and others are oten answered in the company"s annual report, a yearly statement of the inancial condiion, progress, and expectaions of an organizaion. Reviewing and evaluaing the informaion used to prepare a company"s inancial statements is referred to as audiing. Private accountants within an organizaion oten perform internal audits to guarantee that the organizaion is carrying out proper accouning procedures and inancial reporing. Public accountants also conduct independent audits of accouning informaion and related records. An independent audit is an evaluaion and unbiased opinion about the accuracy of a company"s inancial. Annual reports oten include an auditor"s unbiased writen opinion. Companies someimes do things that are unethical, which is known as cooking the books. we rely on outside auditors and whistleblowers within the company to report those missteps. Companies will oten recognize revenues that they did not yet earn or they will not recognize their expenses when relevant. They may cheat on the value of their goods.
