The Components of the Dictaminated Financial Statements
A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity.
The final result of an auditor’s work it’s his report. In his report he puts into knowledge of the interested people his opinion formed through the tests made.
The auditor’s report is in what the interested people will lay on to give faith in their declarations about their Financial Statements in which they appear.
It’s mainly through this report how the public in general and the client realize the auditor’s work and in most of the times, it’s the only part of the mentioned work that they can see.
For what we’ve seen, the Dictaminated Financial Statements are those that have been checked by -an independent from the negotiation- Public Accountant and from which he express his impartial opinion about the Financial Statements.
The Dictaminated Financial Statements are very important because they certify that the report has been inspected by a Financial Auditory. The Auditory is one of the mechanisms that help to control the Financial Movements.
In the other hand, having a report without errors is the result of a good intern control and of an efficient application of the Accounting and Tax Standards by part of the accounting, administrative and financial areas of a company.
What an auditor has to observe in a report about the Financial Statements are the following points:
-They have been made according to the Accounting Standards.
-That those standards were applied under consistent bases.
-That the information presented is suitable and enough for its application.
One of the most common uses for the report is it’s utilization by the Tax authorities to verify the right payment of the federal taxes of the taxpayers obligated to report their Financial Statements.
A Financial Statement is composed by
-Assets: the economic...