By – nsjfinancialservices
24.08.22 04:45 PM
Audited financials are usually requested from the bank or investors when they need to get a true picture of your financials & business performance. This is usually signed off by an independent party/ charted accountant. However, not all audited financials need to be signed off by an independent auditor or charted accountant. Practicing accountants (like NSJ), can sign off on your audited financials.
Depending on the amount you are looking for from the financial institution or investor, they may also ask that your financials be signed off by an auditor. This is where they will review the financials that the accountant prepared. This is to ensure that the figures prepared are accurate and show your true financial position.
These reports are used by investors to evaluate a company’s financial situation and to determine whether it is a good buy. In addition, they can also be used by companies themselves to analyze their financial health and ensure that they are on track with their financial goals.
Companies that are publically traded also need to prepare audited financials to ensure transparency with their investors and to prove that they are holding up their end of the bargain for persons who are investing in their company.
Auditors will verify that the company’s financial statements are correct and compliant. They will also review journal entries to confirm whether they were made correctly and show what was recorded as income and expense. In addition, an auditor would be expected to examine the internal controls used by the business to ensure they are adequate and effective.
Audited financials include the following:
- Balance sheet – This shows the company’s assets, liabilities and shareholder equity.
- Income statement – This shows the company’s revenues, operating expenses, and net income.
- Statement of cash flows – This shows how much money came in and went out over the course of the year.
Audited financials are the most accurate representation of a company’s financial status because they are audited by independent third parties. However, audited financials do not tell the full story. They only show the numbers on paper, not what is actually happening behind the scenes. Therefore, they should always be used in conjunction with other sources of information, such as non-audited financials and management reports, to get a more complete picture of a company’s finances.
Need to get your company financials prepared?
Contact NSJ Financial Services an approved practicing accountant that can sign off on your financials
