The main responsibility of the auditor is to determine whether the financial statements comply with generally accepted accounting principles (GAAP).
The Securities and Exchange Commission (SEC) requires all public companies to undergo regular audits by external auditors in accordance with formal audit procedures.
There are several different types of auditors, including those employed by companies and those employed by an external audit firm.
The final judgment on the audit report can be either qualified or unqualified.
An Internal Auditor (IA) is a trained professional tasked with providing an independent and objective assessment of a company’s financial and operating performance.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.