Memo On Auditor?s Opinion
Memo on Auditor?s Opinion
After reading this section of the book it made me question the accuracy of most financial statements. It basically stated that you would get what you pay for. Example E3-3 in the book states: ?It is impossible for an auditor to ?guarantee? that a company?s financial statements are free of all error because the cost to the company to achieve absolute accuracy (even if that were possible) and the cost of the auditor?s verification would be prohibitively expensive.? This tells me that anyone who can afford to pay for the auditor?s accuracy will have a more defined annual report.
This worries me because as an investor, how would I know who invested that extra dollar to provide me a more accurate statement This practice is unfair to consumers across the country. We will not know whom to trust because of doubts we may have regarding each company?s financial background. My next question would be is it safe to go with the smaller companies who visibly would not have the finances to pay these high-priced auditor?s ?accuracy? fees Or what about the company that has just gone public who may not know about
auditor?s, accuracy, pay, know, tried, statements, made, financial, because, whom, things, smaller, section, report, reading, question, public, practice, possible, out, make, just, figure, fare, extra, cost, company?s, company, companies, book, been, basically, auditor, annual, after
