Summary Used by auditors as a check on the accuracy of management-prepared financial statements Letters are sent to third parties to confirm various items on the company's books and records Sent to customers, suppliers and banks, etc. To confirm account receivables, account payables and cash balances, etc. Per SAS 67: The Confirmation Process [more...]
Statutory Requirements Exchange Act §13(b)(2) Statute Records defined Exchange Act §3(a)(7) Requires a system of internal accounting controls Note: CEO/CFO now required to certify internal control SEC Rules Rule 13b2-1 Rule Prohibits falsification of books and records Rule 13b2-2 Rule Prohibits false or misleading [more...]
Summary Letter from company's auditors to underwriters Re: financial statements and financial data included in an offering document In part, a "bring-down" of the company's audited financials to the date of the offering document In part, a documentation of procedures taken by auditor Intended to support underwriters' due diligence defense [more...]
Statement of Auditing Standards (SAS) No. 59 As part of GAAP audit, requires auditors to evaluate whether substantial doubt exists about the entity's ability to continue as a going concern for a reasonable period of time Typically assessed for no more than a one year time horizon beyond the date of the financials being audited If there is [more...]
Public Company Accounting Oversight Board PCAOB Home Page Phone numbers / Addresses News & Events Rule-making Sarbanes-Oxley Act Provisions § 101 PCAOB Established Statute Establishes PCAOB to regulate auditors of public companies § 102 Auditor Registration Statute PCAOB to register public accounting firms [more...]