Feb 7th 2012
The Center for Audit Quality (CAQ) has released a short educational video that explains how independent external auditors evaluate a public company's financial statements.
The production marks the return of the five members of the "System of Investor Protection" – those with key responsibilities in the financial reporting system. Joining External Auditor Ledger Lines are Audit Committee Chair Indy Pendent, CFO Lotta Charts, Internal Auditor Ida Figures, and Regulator Johnny Law.
Ledger Lines explains the audit process, including the risk assessment, selection of the audit team, collection and documentation of evidence, and issuance of a written audit opinion as to whether the financial statements, as a whole, are free of serious or material misstatement.
"Since it was posted last October, over 3,300 individuals have viewed our first video on the 'System of Investor Protection,'" said CAQ Executive Director Cindy Fornelli.
To view the video, go to www.CAQForInvestors.org, a dedicated website that hosts a variety of resources for investors, including "The Guide to Public Company Auditing" and "Did You Know?" facts about the audit process.