As part of their financial responsibility companies provide the members of the board of directors, investors and other interested parties an audited financial statement. Audited financial statements are prepared by Salt Lake City CPA firms on behalf of the business entity.
It is not the responsibility of Salt Lake City CPA firms to prepare source documents for the audit; these are provided by the company or organization. The documents that are provided to the audit team include accounts payable and receivable, budgets, profit and loss statements, expense reports, etc. The auditors take these and other documents, evaluate them, cross reference them and then provide a statement that can be presented to any interested party.
The statement that is provided by the auditors is referred to as an “opinion.” As part of their duties the auditors are responsible for providing an opinion, either unqualified or qualified. When the result of the audit is unqualified the auditor is saying that they agree with the methods used to prepare the audited documents and that the audit is accurate.
On the other hand, if the audit team renders a qualified opinion they are indicating disagreement with the methods that were used by the entity in the preparation of the supporting financial documents. This qualified opinion must not be misunderstood, it does not necessarily mean that the auditor believes an unethical act took place, it generally means that there were instances of errors; perhaps an expense item was misallocated or errors in line items were noticed.
There are times when accountants assigned by Salt Lake City CPA firms to conduct an audit may not feel they are prepared to render any opinion. In many cases this is an indication that the financial statements and records that were provided were insufficient and an opinion cannot be reached. It may also be that the audit unearthed issues that must be addressed before the auditor can actually determine the accuracy of the data that was provided. When an auditor feels that an opinion cannot be rendered this is an indication to management that the internal accounting procedures and practices must be retooled so the company can operate to acceptable accounting standards.
Salt Lake City COA firms usually prepare audited financial statements annually. Businesses share these audited statements with investors, top management and the board. Non-profit organizations share the results of their audit with members, key personnel and the governing body of the organization.
Salt Lake City CPA firms are responsible for preparing a wide array of financial documents, financial audits and reviews are but one service the firm provides. You are invited to discuss your financial needs with Business Name Certified Public Accountants.
