One of the rules that the securities exchange commission SEC has issued is that the financial statements of public companies must be examined by an independent public accountant through the process of an audit.
This rule means that a Coeur d’Alene accountant, who is not an employee of the company and who is licensed to practice as a public accountant by the state of Idaho, must audit the records of the company and must determine whether or not the financial statement is in accordance with the rules of General Accepted Accounting Principles GAAP. In addition, the auditor has the responsibility to give reasonable assurance that the financial statements are free of any material misstatement.
- When auditors issue their reports, they must follow the same set of rules that are required by the accountant’s GAAP.
There are two types of audits:
- Internal audits (done for the Idaho company for the company’s private use)
- IRS audits (done for tax purposes by the government tax agency)
For Tax Resolution or Tax Preparation services in Coeur d’Alene Idaho click here.
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