An investor is considering investing in one of two companies. The companies have very similar reported financial
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Question:
An investor is considering investing in one of two companies. The companies have very similar reported financial position and results of operations. However, only one of the companies has its financial statements audited. a. Describe what creates the demand for an audit in this situation. Include a discussion of how audited financial statements facilitate this investment transaction, and the effect of the audit on business risk and information risk. b. Identify the potential consequences to the company of not having its financial statements audited.
Related Book For
Principles of Financial Accounting
ISBN: 978-1133939283
12th edition
Authors: Belverd E. Needles, Marian Powers
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