Author Question: Explain why a firm's financial statements should be audited.[br][br][b][color=#FA1639]Question ... (Read 45 times)

kellyjaisingh · **on:** Jul 14, 2018

Explain why a firm's financial statements should be audited.

Question 2

The results of training evaluations should not be made known to all those involved in training programs.

Indicate whether the statement is true or false

cadimas · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

It is important that managers, investors, and potential investors be able to trust the numbers. To improve the accuracy of a firm's accounting information and its financial statements, businesses rely on audits conducted by accountants employed by public accounting firms. The purpose of an audit is to make sure that a firm's financial statements have been prepared in accordance with generally accepted accounting principles (GAAPs). While an audit report does not guarantee that a company has not cooked the books, it does imply that, on the whole, the company has followed generally accepted accounting principles (GAAPs).

Answer to Question 2

False