RSM100Y1 Lecture 19: Rsm Lecture Monday
Document Summary
To make sure that the numbers are correct. The auditors are not related to the company, you get an independent party that comes in and checks that the numbers are correct. Public company: publicly traded therefore they have to disclose their information. When we say that we have recognized revenue it means that it showed up in the income statement. When the risks and rewards of ownership has transferred. Personal gain, to increase investor confidence, to increase their share prices, to get financing, to lower the tax they have to pay (decrease their revenue, increases their expenses) Market down or increase the value of inventory, change you counting method for inventory, manipulate the period in which you record an expense or revenue. What s an annual report: it s a document that is issued by a company, that has a lot of information in it, it talks about their strategic positions, threats, weaknesses, opportunities.
