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Objectives of financial statements. Objectives of Financial Statement Analysis. The objective of a financial statement audit is to obtain reasonable assurance that the financial statements are free of material misstatement. Provision means setting aside a part of the profits for meeting a liability in future the amount of which is not known accurately at the time of finalization of financial statements.
An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. To examine efficiency of various business activities. The basic objective of any financial statement is to fulfill information needs of the intended users.
Financial statements are required to ascertain whether the enterprise is earning adequate profit and to know whether the profits have increased or decreased as compared to the previous years so. Ad See detailed company financials including revenue and EBITDA estimates and statements. Broadly we can divide the financial statements in two different types.
It has been accepted for inclusion in Haskins and Sells. To provide information about economic resources and obligations of a business. Objectives of financial statements Oscar S.
Gellein Follow this and additional works athttpsegroveolemissedudl_hs Part of theAccounting Commons and theTaxation Commons This Article is brought to you for free and open access by the Deloitte Collection at eGrove. Unlike owners management of the company other stakeholders like investors creditors bankers tax authorities government etc do not have the authority and direct access to the financial information of the company. Get detailed data on venture capital-backed private equity-backed and public companies.
However there are different kinds of financial statements for different purposes. Assessment of historical and present performance This is among the most important objectives of financial statement analysis. To find out the financial performance of a company.
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