Inthe company’s opinion, the accompanying balance Sheet as well asthe Income Statement represents the financial position of the companyfor the period ending December 31st2006, 2007, and 2008. The financial information has been prepared inaccordance to the Generally Accepted Accounting Principles (GAAP)provided by the country. It is worth noting that the management ofthe company was responsible for the preparation of these financialstatements as set in the company’s management policies. Themanagement is also responsible for ensuring that the financialstatements are effectively reported and maintained. The managementhas to ensure that the financial statements are well presented andopinions of the same expressed. The company ensured transparency inthe presentation of these financial statements through ensuring thatit followed the auditing policies as provided by the Public CompanyAccounting Oversight Board (PCAOB). According to the provisions ofthe PCAOB, the company is supposed to plan and conduct audits so asto obtain reasonable assurance concerning whether the financialstatements are free of any material misstatement and whether there ismaintenance of effective internal control over financial reporting inall material respects.
Thecompany audits ensured examining, through testing, evidencesupporting the amounts in the financial statements, estimates made bythe management, and the overall presentation of the financialstatements. The internal control of the company had the control overthe financial reporting in order to ensure that the financialstatements are reliable for both internal and external purposes.Therefore, the company wants to assure the shareholders that thefinancial statements presented to them have been well prepared andscrutinized to ensure their reliability thus, they present thefinancial position of the company as per the dates indicated.
Elliott,B., & Elliott, J. (2013). Financialaccounting and reporting.Harlow: Pearson.