Description

A certified financial statement has been audited for accuracy by an independent accountant. A compiled statement may provide investors with useful information but it has not been audited. The quarterly and annual reports issued by public companies are certified financial statements.

You need to hire a certified public accountant to provide a certified income statement. The CPA certifies financial statements by going over them, comparing them to reality, and certifying that the depiction of your finances is accurate.

1. Review the information systems.
2. Look at record-keeping policies.
3. Review the accounting system.
4. Review internal controls policies.
5. Compare the internal records.
6. Review the tax returns.
7. Perform tests of controls and the substantive test.

A certified financial statement is one that has been reviewed and approved by a certified, independent auditor. Such statements are considered more reliable than unaudited statements and are mandatory for publicly traded companies. In addition to external auditors, companies can also employ internal auditors.