[BU477] - Final Exam Guide - Ultimate 49 pages long Study Guide!

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29 Mar 2017

Document Summary

Management, bank, other potential users of fs, other investors, staff responsible in preparation. Auditors is expected be independent of management. What is doing an management function by supervising bookkeeper and advocating on behalf of the merchant assisting with bank negotiations. Conflicts with her ability to do the audits (lack of impendence) Setting up the accounting system she would be auditing her own work (self- Review: she can do one but not both. Conclusion: she should not be able do all this work she could do the audit or other work but just not both. What can cause financial statements to be inaccurate. Remoteness of information - not having all the information available to you. Bias people can bias on how the statements look. Voluminous data there is too much information. Costly to do financial statements it can be too costly. User verifies information: cra reviews your tax return to make sure it is correct.