Performance work statement template, All businesses, whether public, private, or non-profit, need to prepare financial statements in their own performance to give financial accountability and accuracy for their stakeholders and people with an interest in the business. These statements enable management to make business decisions, enable creditors to assess loan programs, and provide people with information to make investment choices.
Financial statements provide information from an organization’s accounting documents about their economic assets and responsibilities on a particular date, in addition to their financial activities over a time period. These statements are generally prepared according to Generally Accepted Accounting Principles (GAAP), that will be the standards issued by the American Institute of Certified Public Accountants (AICPA), but they may also be ready on other comprehensive basis of accounting, for example cash basis or tax basis, depending upon the needs of the consumers.
An accountant may compile the data given by the customer into a correct financial presentation. This really is the only financial statement a non-certified accountant could prepare. The accountant will read the statements and issue a record. If the organization has elected to omit any disclosures, then this must be contained at the accountant’s report of their financial statements, in addition to though the disclosures were included; they might have influenced the consumer’s conclusions.
The accountant coordinating the compiled financial statements aren’t required to verify or confirm the records and do not need to examine the statements for precision. However, an accountant engaged to market financial statements is required to obtain an overall understanding of the company’s business transactions, its accounting documents, qualifications of their accounting employees, the accounting basis on which the financial statements have been presented, and the shape and content of the financial statements. If any obvious material misstatements or missing information is mentioned, the accountant must go over these items with the organization’s management for clarification or alteration to the statements, or draw from the engagement if management won’t offer additional or revised data.
In composed financial statements, the company, not the accountant, but is responsible for its accuracy and completeness of the financial documents. Since the statements were not audited or examined, they aren’t accredited by a Certified Public Accountant (CPA). No opinion or confidence is expressed in the report as to if the compiled statements are free from material misstatements or even false/missing information or if they’re discovered to be true, complete and fairly presented to meet the necessities of the US GAAP (Generally Accepted Accounting Principles).