AUD Presentation And Disclosure

—Importance of disclosure and presentation

1. Evaluate of performance company .
2. Help asses future cash flow and future performance .
3. Provide information about resources, obligations and equity .

—Presentation and Dislosure

Role of Audit Report

• The report must follow GAAP
• Reliability
• Competence and accuracy
• Neutrality

—Why Disclosure ?!

• —Subsequent events
• —Cutoff

—Financial Statement

1. Income statement
2. Balance sheet
3. Cash flow
4. Owner equity
5. Disclosure
6. —Disclosure Notes

—The statments number 5 is notes

obligate to presentation according GAAP standards .

—Mini case ..!

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—The first look to the last presentation statement mean the company ( mine ) loses everything .

• —Anyone just say the management is the reason .
• —But on the other hand no body ask why ?!

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—Why ? The lost happend

Q.How we know about it ?

R.The financial statement does not show what happened & doses not show the reason .

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The auditor must tell the management to show the fifth financial statement

.. ( Disclosure ) ..

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When we looking at ( notes ) disclosure we can say what happened at the fail of mine cost , the company noted that assets equal 350000000 and the value of assets equal Zero !!

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And by the way the company lost some labor in explosion ..

— 13 workers dies .

— The company paid compensation totaled 350000000 $ .

— Not just that .. The company loses net income 550000000 , so we shouldn’t say the company management is the reason .

Maybe in 2015 the company back to the business , and investors back to the company after read notes .

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Good Luck

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