What is an audit?

When a company breaks the rules of accounting and ethics, may be legal sanctions against him. He can intentionally deceive their investors and lenders with a series of false or misleading reports. This is the controls where are. The controls are a misleadingly, maintain financial reports to a minimum. CPA Auditors are like roads that accelerates the traffic regulations and issuing tickets to a minimum of officers. A review of the audit can be problems to reveal that the company was not aware of.

At the end of the review of the audit, the CPA prepared a brief report indicating that the company its budget in accordance with accounting principles ordinary (GAAP) or when it has not prepared. All the companies listed would require annual audits by an independent CPA. Companies, which are Aktien listed on the New York Stock Exchange or the NASDAQ should check the CPA. For a company, the costs for the implementation of an annual audit are the cost of doing business; This is the price, a company pays for public capital markets and they have traded their shares in public places.

Although federal law requires evidence of private companies, banks and other lenders can be private companies, of the audited annual accounts. If the creditors do not require controlled, business owners must decide if an audit is a good investment. Instead of a check, really not, many small businesses have CPA one out regularly on its decision-making methods of accounting is a look and advise their financial reports. But that a CPA has carried out at least one audit, he or she must be very careful not to render an opinion on the financial statements. Without a careful examination of the evidence to support the amounts recorded in the financial statements is unable to CPA, an opinion on the company's consolidated accounts.