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We have already learned in prior modules that financial statements are formal records covering the financial activities of an organization

General Question

We have already learned in prior modules that financial statements are formal records covering the financial activities of an organization. The information is presented in a structured manner and according to standards promulgated by US GAAP in a structured format to make the data understandable and comparable over time. The financial statements are the responsibility of the management.

Start by reviewing the following videos:

Management Study Guide. (2020, November 11). What is auditing? [Video]. Vimeo.

Benefunder. (n.d.) Continuous auditing benefits our society [Video]. Vimeo.

KPMG US Careers. (2014, October 1). What is audit? [Video]. YouTube.

Feel free to review the background material or Internet for additional resources.

How can investors and other third parties trust this information and why is trust so important for the company and our economy?

Comment on the auditing process.

The auditor has to issue an opinion at the end of an audit. It is an auditor’s report and is always part of a set of audited financial statements. (Note that many companies divide the annual report into segments on their website, but the opinion is always included in the full report.) You have to review a financial statement of choice for this module. What kind of information does the auditor’s report include?

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