BU547 Lecture Notes - Lecture 8: Canada Revenue Agency, Financial Statement
Document Summary
Bu547 lecture 8: as a company grows, so does the volume of its transactions. It is almost impossible for users of the financial statements even with access to all of the accounting records to examine the large number of transactions recorded in the company"s accounts. It is more economical to have an auditor examine these records and present an audit report to all users of the data. Complexity of transactions: because of the complexity of many financial transactions, users of financial information generally prefer to have a financial expert examine complex transactions from an independent point of view. Act: internal auditors perform compliance or operational audits in order to assure management or the board of directors that controls and policies are properly and consistently developed, Three main factors influence the organizational structure of all firms: the need for independence from clients.
