The System Of Investor Protection
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The System Of Investor Protection Annual financial statements must be audited by external accountants prior to their release. What does that mean? What is involved? This is a fun, short (less than 5 min) video from the Center for Audit Quality that gives you an overview of the process and the different groups involved. It's an opportunity for you to learn a little bit more about how external auditors, audit committees, CFOs and internal auditors oversee the financial reporting process to give you confidence in the financial information released by publicly traded companies. The Financial Statement Audit Enjoy! Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe This is great!! Thanks for the link Laurie! I love all these things you're sending out......can always learn something new!!
-----Original Message----- to the Club Cafe email list. Click here to Unsubscribe From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Thu, Jun 14, 2012 2:07 pm Subject: [club_cafe] The System Of Investor Protection
Annual financial statements must be audited by external accountants prior to their release. What does that mean? What is involved? This is a fun, short (less than 5 min) video from the Center for Audit Quality that gives you an overview of the process and the different groups involved. It's an opportunity for you to learn a little bit more about how external auditors, audit committees, CFOs and internal auditors oversee the financial reporting process to give you confidence in the financial information released by publicly traded companies. The Financial Statement Audit Enjoy! Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Click here to Subscribe Thank you Laura. I thought this was an easy to digest, brief introduction to a complicated topic. I'm glad to hear you thought so also. Auditing is an extremely important part of the effectiveness of our financial system operations. In all annual reports you will find the opinion of the auditors. While it is managements responsibility to present accurate financial reports, the auditors are responsible for making a plan and gathering sufficient evidence to be able to give "reasonable assurance" that the financial statements are "free of material misstatement" and that "effective internal control over financial reporting was maintained in all material respects." You might find it an interesting club educational topic to find the auditors opinion in the 10-K report for one of the companies you have invested in. You'll find the wording quoted above in all the opinions along with wording describing both management and the auditors responsibilities to ensure accurate reporting. There are a lot of judgments that go into preparing financial statements and doing an audit. There is also a lot of potential liability if it is shown that it has not been performed with "due diligence" on the part of the auditors. The sheer number of parties that might suffer significant losses due or at least partially due to the use of invalid audited information leaves CPA's exposed to potential liabilities which can easily exceed other professionals such as physicians. The more we, as individual investors, understand what the requirements are, the more informed questions we can ask and the more support there will be for ensuring the system is working adequately to protect our interests. Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Thu, Jun 14, 2012 at 3:11 PM, Laura Scott <lscott1121@aol.com> wrote:
This is great!! Thanks for the link Laurie! I love all these things you're sending out......can always learn something new!! |
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