AFM101 Chapter Notes - Chapter 6: Quality Assurance, Stock Exchange, Financial Statement

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Donna Ptsuka

Document Summary

Auditing standards: quality assurance service: undertaking ongoing surveillance of their reporting and trading activities. Board of directors: elected by the shareholders to represent their interests, is responsible for (cid:373)ai(cid:374)tai(cid:374)i(cid:374)g the i(cid:374)tegrity of the co(cid:373)pa(cid:374)y"s fi(cid:374)a(cid:374)cial reports. Unqualified (clean) audit opinion: auditors" state(cid:373)e(cid:374)t that the fi(cid:374)a(cid:374)cial statements are fair presentations in all material respects in conformity with canadian auditing standards. Earnings forecasts: predictions of earnings for future accounting periods. Institutional investors: managers of pension funds, mutual funds, endowment funds and other funds that invest on behalf of others. Lender (creditors): include suppliers and financial institutions that lend money to companies. Private investors: include individuals who purchase shares in companies. Relevant information: can influence a decision; it has predictive and/or confirmatory value. Material amounts: are a(cid:373)ou(cid:374)ts that are large e(cid:374)ough to i(cid:374)flue(cid:374)ce a user"s decisio(cid:374) Faithful representation: suggests that information provided in financial statements must reflect the substance of the underlying transactions.