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Control mechanism

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Issue:

Business

 

Written by:

Susanna D

 

Date added:

December 30, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 981

 

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5928 times

 

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GAAP is determined by the American Institute of Certified Public Accountants (AICPA). Board members, staff, and their relatives cannot perform audits because their relationship with the organization compromises their independence.(1) The audit report is addressed to the board of directors as the trustees of the organization...
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The report usually includes the following: A cover letter, signed by the auditor, stating the opinion, as described above. The financial statements, including the statement of financial position (balance sheet), statement of financial activity (income statement), and statement of cash flows. Health and social service organizations also have a statement of functional expenses...
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