You overheard your CEO telling your CFO to provide her with the company’s Financial Information. Your CFO approaches you to help him prepare for the Financial Reporting process. Given your competencies in the Health Care Accounting Class, you informed your CFO of the need to take a closer look at the financial statement so as to provide a complete scenario of the company’s financial health. He appears to agree with you more so that the company’s external auditors would examine the company’s financial statements. Knowing that the external audit process is central to the financial reporting process, you cautioned him that audit failure could occur. He sighed and wondered if you could help him to answer the following questions in detail.
- Why do organizations prepare cash flow statements and operating statements?
- Describe the difference between the Excess of Revenues over Expenses and the Increase in Net Assets without Donor Restrictions.
- Evaluate and discuss reasons for audit failure.
The CFO will reward you graciously with 100 points towards your promotion, and that those points will be allocated to each of the three areas of expectations above as follows:
- 25 points
- 25 points
- 50 points.
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