09-11-2009, 05:13 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by waqas_naeem</i>
<br />To prepare financial statements which gives <b>true and fair</b> view of business state of affairs.
1.what is meant by phrase "TRUE AND fAIR"?
2.How to determine that financial statements are true and fair?
3.who is responsible to ensure that statements are true and fair?
4.who will determine that statements are ture and fair?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Waqas,
The respective responses to your queries are the followings.
1- The term âTrue and Fairâ with regards to the financial statements implies that these statements should be presented fairly and should follow accurate and unbiased views with respect to the Financial Position, Financial Performance and Cash flow of an entity so as to avoid any possible susceptibility.
2- To ascertained whether financial statements are True and Fair, aforesaid should be complied, as provided in â1â above.
3- Primarily, this is the responsibility of the Management to ensure whether the statements are True and Fair.
4- This is the responsibility of the Auditor to determine whether Statements are true and fair, ultimately, since initially, Statements are presented to the Management / CEO for approval, however, if the accounts, in spite of having biases in presentation, are approved by the management then ultimately Auditor shall have to ensure whether the Statements are true and fair.
Best Regards,
<br />To prepare financial statements which gives <b>true and fair</b> view of business state of affairs.
1.what is meant by phrase "TRUE AND fAIR"?
2.How to determine that financial statements are true and fair?
3.who is responsible to ensure that statements are true and fair?
4.who will determine that statements are ture and fair?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Waqas,
The respective responses to your queries are the followings.
1- The term âTrue and Fairâ with regards to the financial statements implies that these statements should be presented fairly and should follow accurate and unbiased views with respect to the Financial Position, Financial Performance and Cash flow of an entity so as to avoid any possible susceptibility.
2- To ascertained whether financial statements are True and Fair, aforesaid should be complied, as provided in â1â above.
3- Primarily, this is the responsibility of the Management to ensure whether the statements are True and Fair.
4- This is the responsibility of the Auditor to determine whether Statements are true and fair, ultimately, since initially, Statements are presented to the Management / CEO for approval, however, if the accounts, in spite of having biases in presentation, are approved by the management then ultimately Auditor shall have to ensure whether the Statements are true and fair.
Best Regards,