AFM131 Chapter Notes - Chapter 16: Whist, Financial Statement, Forensic Accounting

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Robert Sproule

Document Summary

Impossible to manage a business without being able to read, understand and analyze accounting reports and financial statements (which reflect a business"s health) Accounting is the recording, classifying, summarizing and interpreting of financial events which help evaluate financial condition and the operating performance. Managers and other stakeholders of a business use this information in order to make informed decisions. Used to provide information and analyses to managers inside the organization to assist them in decision making: lots of forwarding looking data, compares actual financial performance to: Past performance as a benchmarking activity for both planning and control: sustainability reporting, annual report of green initiatives. Accounting information and analyses prepared for people outside the organization. Must be provided by all public companies. Job of reviewing and evaluating the records used to prepare a company"s financial statements both internally and externally. Forensic accounting focuses on identifying a company"s fraudulent activities.