ACCT 1201 Study Guide - Final Guide: Audit, Financial Statement, Form 10-Q
6 Feb 2020
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Sec: protect investors, maintain integrity if markets. Pcaob: sets auditing standards for public companies. Cfo: highest officer associated with financial accounting. Reporte to sec that statements are all true. Certify no deficiencies and weaknesses in internal controls. Disclose to board and auditors weaknesses and frauds. Bod: elected by the stockholders to oversee ethical operations. Audit committees: independent individuals to give unqualified opinion (clean) Information services: allow investors to get independent info to recommend. Financial analysts: receive reports and gather info to forecast earnings and value. Institutional investors: use own analysts to invest on behalf of others. Private investors: venture capitalists who buy shares from brokers lenders/ creditors: suppliers, banks, credit companies. Cost effectiveness: benefits of accounting > cost of accounting. Material amounts: large enough to influence decisions of users. Annual reports (form 10k): four basic statements + notes + auditor"s opinion. Quarterly reports (form 10q): condensed statements, unaudited. Disclosure of new important material (form 8k)
