When auditors audit a companys financial statements, do they do it from a finalized set of financial statements?
If you look at the standard auditor’s report, you will note that the financial statements are the responsibility of management and that the auditor’s responsibility is to provide an opinion on those statements. Auditors usually work together with management to come up with the final financial statements. Often, management has a draft set of financial statements that are provided to the auditors. If the auditor discovers any adjustments that are necessary to the financial statements, he/she will advise management and management will take the responsibility of adjusting the financial statements. If the auditor and management disagree on the adjustment, it may be necessary for the auditor to provide something other than an unqualified report.
Related Questions
- Is a NASDAQ-listed company required to disclose the receipt of a "Going Concern" opinion from its independent auditors in the financial statements contained in the Form 10-K (or its equivalent)?
- When auditors audit a companys financial statements, do they do it from a finalized set of financial statements?
- Does a Company have to prepare and audit its financial statements?
