![]() You can also find much of the information contained in these resource materials on the Internet. ![]() You should be able to find these resources at your local public library or the nearest law or business school library. Some resources also list major auditing firms and the publicly traded companies they audit. Be sure to check any Form 8-K filings submitted after the company's most recent annual report to find out whether the company subsequently hired a new auditor.Ī variety of commercial resources exist that list publicly traded companies and their auditors. Whenever a company hires a new auditor to certify its financial statements, it must announce that news on Form 8-K (under Item 4) within 5 business days. Look for the "Accountant's Report" under Item 8 of the Form 10-K. You'll find the identity of the company's auditor in its annual report on Form 10-K. The best way to identify the auditor of a publicly traded company is to check the company's most recent filings using our EDGAR database of corporate filings. How Can I Find Out Who Audits a Particular Company? Arthur Young: "The SEC requires the filing of audited financial statements in order to obviate the fear of loss from reliance on inaccurate information, thereby encouraging public investment in the Nation's industries." That has important implications for investors making investment decisions, for banks and financial institutions that may extend credit or make loans to the company, and for other businesses and members of the public who deal with the company. Supreme Court stated in the landmark case of U.S. What's the Purpose of an Audit?Īn audit provides the public with additional assurance - beyond managements' own assertions - that a company's financial statements can be relied upon. If the auditor cannot reach that conclusion, then the auditor must either require the company to change the financial statements or decline to issue a standard audit report. The procedures the outside auditor uses must be sufficient to allow the auditor to obtain enough competent evidence to express an opinion on the fairness of the financial statements and whether they conform to GAAP in all material respects. During the audit, the outside auditor obtains an understanding of the company's internal controls and then applies "auditing procedures," which may include inspection of the company's books and records, observation, inquiries, and confirmations. The company's outside, independent auditor then subjects the financial statements and disclosures to an audit. Who Prepares a Company's Financial Statements?Ī company's management has the responsibility for preparing the company's financial statements and related disclosures. In addition, some companies also use internal auditors to review the financial reporting processes and internal accounting controls to assure that the company's systems are appropriately designed and operating effectively. What Do Independent Auditors Do?Ī company's outside, independent auditor examines the company's financial statements and provides a written report that contains an opinion as to whether the financial statements are fairly stated and comply in all material respects with GAAP. Many of these financial statements - including those in the company's annual report and those provided to shareholders in connection with the solicitation of proxies for annual meetings - must be examined and reported on by an independent auditor. The federal securities laws require publicly held companies that file reports with the SEC to submit financial statements that are accurate, truthful, and complete and prepared according to a set of accounting standards called "Generally Accepted Accounting Principles" (or "GAAP"). What Is an Auditor?Īn auditor is an independent certified public accountant who examines the financial statements that a company's management has prepared. This publication describes the role of the auditor in reviewing a company's financial books and records. In many cases, this information must be audited. Securities and Exchange Commission and file annual and other reports, they must disclose important financial information. When companies register their securities with the U.S.
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