By Wade Anderson

Preparation and filing of accounts The procedure of filing audit reports applies to all public companies, even if they are filing for exemptions based on the contents of the report. Every company, be it public or private, has to keep accounts of its existence and performance. The accounts prepared must include:

1. Profit and Loss account 2. Balance Sheet 3. Auditors report 4. Directors report duly signed by either a director or a secretary of the company 5. Group accounts, in case of a group of companies

The auditor is an individual or a firm appointed to scrutinize and prepare the complete financial position of the company via its performance for the financial year. There are both public and private companies that carry out audits and prepare the accounting audit reports. The accounting report deals with all the operating and financial aspects of the company.

In the United Kingdom, all companies, limited and public limited, must submit their accounts to the Registrar of Companies. In the United States, the report is to be submitted to the Securities Exchange Commission though private companies do not need to do this. Incorporating a company varies from state to state.

The duties of the auditor involved in preparing accounting audit reports are as follows:

1. Financial statements and Reporting process Must review and discuss with external auditors and management of the Company the interim financial statements

2. Risk management and Internal controls Must review and monitor the integrity of the Companys internal control system. Discuss Company guidelines and policies pertaining to risk management, risk assessment and internal control.

3. Auditor qualifications and their independence and effectiveness To consider and recommend to the Board appointing, reappointing, removing and remunerating external auditors of the Company.

Associations such as AICPA have, through the Auditing Standards Board, issued a number of statements relating to the assessment of risk in auditing financial statements. These statements are the foundation for setting standards and give some much needed guidance with regard to auditors assessing risks of material untruths (either fraudulent or erroneous) in financial statement audits. It also needs to design and perform audit procedures which are responsive to the assessed risks.

Those interested in evaluating the performance of a company will need the accounting audit report to form a considered opinion. Using this report can make them invest in the shares of the company or for the bigger business heads, decide whether to potentially purchase a company or not.

Wade Anderson is a CPA and operates DigitalWorkTools.com Legal Forms and Business Documents. Click to view an Audit Report

By Tracy Coenen, CPA, MBA, CFE Forensic accountant offers guidance for auditors, CFOs, and investors evaluating the financial statements of companies in the path of Hurricane Katrina. Chicago, IL (PREWEB) January 10, 2206 — In the wake of Hurricane Katrina, law enforcement has focused on insurance fraud and charitable fund fraud. However, improper financial reporting by victim companies has been overlooked.

Tracy L. Coenen, CPA, MBA, CFE of Sequence Inc. is warning CFOs and auditors of the financial statement fraud risks surrounding companies in the path of Hurricane Katrina. The motivation is in place for the manipulation of financial statements as companies close out their year-end books. Companies have lost sales, assets, and customers because of Hurricane Katrina, but the greater risk they face is the wrath of investors and lenders if positive financial statements are not released. Coenen identified the financial statement areas at greatest risk of intentional misstatement, and offers tips for auditors to help detect such schemes. CFOs, investment analysts, and investors want to become familiar with the vulnerable areas of financial statements as well. With hundreds of corporate fraud investigations under her belt, Coenen is intimately familiar with the methods utilized by financial executives to enhance their financial statements. %26#8220;While we all wish to be sensitive to the devastation experienced by companies in the path of Hurricane Katrina, auditors cannot let their sympathy supersede an appropriate level of skepticism when evaluating financial statements,%26#8221; says Coenen. In the current issue of Fraud Magazine, Coenen discusses her concerns about financial statement fraud related to the hurricane, and provides guidance to financial professionals who may be evaluating balance sheets and income statements.

The article can be found at http://www.sequence-inc.com/press/katrina.pdf. About Sequence Inc: Sequence Inc. is a forensic accounting firm with offices in Chicago and Milwaukee. The company works with both private and public companies to evaluate and examine financial data related to fraud and litigation matters. Contact: Tracy L. Coenen, CPA, MBA, CFE Sequence Inc. Forensic Accounting 312.488.3661 www.sequence-inc.com

By Shaunta Pleasant

There are many important documents in the world of business and business ownership, but perhaps no one document is as vital to your financial future as the financial statement.

It is this simple statement that banks, investors and potential partners will use to gauge the current success of your business, and to calculate its future odds of success.

==Using Your Financial Statement To Get Your Business Off The Ground==

Just about everyone who has ever held a nine to five job has dreamed of striking out on their own and leaving the rat race for a slice of the pie.

This approach can be a great choice for many people, but it is important for any would be entrepreneur to understand the world of business, and to understand just what goes into the average financial statement.

Preparing a detailed business plan, including a strong financial statement and a compelling executive summary, is a big part of getting any business off the ground.

==Understanding The Financial Health Of The Business==

It goes without saying that the financial statement will detail the financial health of the business, including the sources of income, all of the business related expenses and of course the profit and loss statement.

The financial statement should also detail the past performance of the company, including how the current performance compares to what the company has done in the past.

==Using A Mentor To Help You Create Your Financial Statement==

The new business owner with a solid business background behind them may have little trouble creating a solid business plan and financial statement, but those who lack such a business background will probably need some help creating this important financial document.

It may be a good idea to seek a business mentor who can help guide you through the creation of your first financial statement. After you understand how the statement works, and what it should include, it will be far easier to create another financial statement as you more forward.

Shaunta Pleasant is a professional writer and editor on business planning topics. Visit my site to learn more about planning the perfect wedding at http://www.yourbusinesspal.com/financial_statement_example.html>