Neil Rischall is the CPA behind the CPABookkeepers site which has a wealth of information about audited financial statements as well as all services provided by a Certified Public Accountant.
Audited financial statements, which have been prepared by an independent Certified Public Accountant (CPA), are used to provide financial credibility, accountability and accuracy for a business. All businesses, whether privately held, publicly owned, or nonprofit need to prepare statements on their financial performance. These financial statements help provide a basis for various business decisions to be made within and regarding a company. The purpose of audited financial statements is to provide interested parties with a reasonable assurance that the company’s financial statements are free of material misstatements or false/missing information and meet the requirements of the US GAAP (Generally Accepted Accounting Principles).
The documents used by an accountant to prepare audited financial statements are provided by the company and include various financial documents such as balance sheets, statements of income and cash flow, accounts receivable/payable documents, and budgets. The CPA examines documents which support figures within the financial statements, assesses the overall accounting principles used, and evaluates the overall financial statement presentation. From this information the CPA creates an audited financial statement.
The audit will give interested parties an unbiased opinion, either qualified or unqualified, regarding the nature of the financial statements and practices within your company. An unqualified opinion indicates that the audit is found to be accurate, complete and fairly presented to meet the requirements of the US GAAP (Generally Accepted Accounting Principles). The audit provides the CPA a reasonable basis for their opinion that the financial statements are free of material misstatements or false/missing information. A qualified opinion indicates that the CPA is not in agreement with aspects of the financial statements and/or methods used to prepare their financial documents. A qualified opinion indicates that the CPA is not confident that the financial statements are correct or accurate. If no opinion is given, this usually indicates that a company needs to improve their accounting practices so they can meet the requirements of the US GAAP (Generally Accepted Accounting Principles) before an audit can be performed.
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