Mr. Mahmoud is the owner of EFG company his finance manager Miss. Bushra presented financial statements with big difference of percentage declined in terms of assets, net income and high increased of liabilities compared to the last year. Mr. Mahmoud ask Miss. Bushra to give explanation, that did not satisfy him. Mr. Mahmoud decided to hire external auditor to clear his doubts.

Based on the above scenario:

Write at least 3 interpretations of financial statement which the auditor may provide. Justify your answer practically

Answer rating: 100% (QA)

Companies produce financial statements that provide information about their financial position and performance This information is used by a wide range of stakeholders eg investors in making economic ... View the full answer