Please help me with this question from my testbook What is the significance of the financial statements which have been included in the annual reports of the two organizations?

Answered: hat is the significance of the…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 19MCQ

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Please help me with this question from my testbook

What is the significance of the financial statements which have been included in the annual reports of the two organizations?

Expert Solution

Step 1

Answer:

Annual reports are the compiled and comprehensive statement that reflect the company's activities throughout the year.

Company's whole financial performance is reflected through annual reports. Shareholders can refer to the reports to analyze the actual profit or loss and how the investment decisions have been taken. Annual reports consists of various reports and one of major reliable report is financial statements.