In time, you will be tasked to apply for a business funding. Most of the investors ensure that they won’t be losing their money especially when you are going to present them an opportunity. This is where a financial statement comes. People who will eventually feel uncertain whether or not to take the opportunity you are offering them especially when it involves finances of your company, it might be possible due to the fact that you haven’t prepared yet an audited financial statement at hand. Financial audits, by definition, is usually conducted to know whether a financial statement are entirely stated in accordance to the given standard criteria. These criteria being referred to are accounting standards that are generally prepared using cash basis and other basis of accounting appropriate. Those public companies are even given an obligation to ensure that their financial statements are registered. In this article, you will be able to learn more information about the context of an audited financial statement.
10+ Audited Financial Statement Samples
1. Contractor Audited Financial Statement
2. Reports of Audited Financial Statement
3. Company Audited Financial Statement
4. Board Audited Financial Statement
5. Notice of Audited Financial Statement
6. Audited Consolidated Financial Statement
7. Audited Financial Position Statement
8. Audited Financial Exception Statement
9. Annual Audited Financial Statement
10. Liquidation Audited Financial Statement
11. Employee Audited Financial Statement
What is an Audited Financial Statement?
An audited financial statement is a type of financial statement that only a certified pubic accountant has audited. It will provide an assurance that the statement itself will adhere or follow the general accounting principles and standards of auditing process. Without having been verified by a CPA, lenders will not be convinced or confident enough to believe that your presented financial statement is considered accurate.
Types of an Audited Financial Statement
- Income statement – this type of audited financial statement shows the performance of a particular company during a one-year period that companies and governments use for financial reporting and budgeting. The statement is responsible for reporting the revenue earned and the expenses made during the period. The report also presents the net profit. After this, an auditor will provide a verification telling that the transactions are accurate.
- Balance sheet – this helps in reporting the financial position of each of the company at the end of the period or in a point in time where balance sheets are already prepared. It presents the company’s assets, liabilities, and equity. All the items under the assets and liabilities are listed and presented in the order of liquidity following the order of putting the most liquid items reported first. An auditor will then make a verification of the existence of the assets and liabilities, and the accuracy of the figures being presented.
- Cash flow statement – this will reveal the cash inflows and outflows which helps in providing an insight to every company’s ability to perform its obligations and continue operating in the future. An auditor will provide a verification with regards to the entries of the cash flow statement to check the accuracy.
What are the three stages of audits?
It includes planning and risk evaluation, testing of internal controls, and substantive procedures. Planning and risk evaluation involves the act of having to understand the business and its environment to which it operates. Testing of internal controls makes an auditor perform functions such as analyzing the effectiveness of the internal control procedures of a particular company. Its focus will be on the limits of employee authorizations, preservation of assets, and separation of duties. Substantive procedures makes an auditor use investigative procedures that will verify the accuracy of the financial data of a company.
What are the types of accountant’s opinions?
It includes unqualified opinion, qualified opinion, adverse opinion, and disclaimer of opinion.
If you want to see more samples and format, check out some of the audited financial statement samples and templates provided in the article for your reference.
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