EFR said:
So it is ok to announce incorrect stuff as long as it is done in a timely manner? You claim to be a CPA, do you give your clients incorrect financial reports and justify it by saying "at least it was in a timely manner"?
Its obvious you did not read my post.
You do realize information changes in these sorts of things. Or maybe you don't
You act like Patel purposely lied or mislead.
As a CPA, I know you do not provide your clients with financial reports, they provide them to you and you have to due your diligence to assess the reliability of the information. If your clients misrepresent things to you, it can result in revisions.
And timeliness is a consideration in financial reporting. I take it you are not a CPA.
Quote:
Types of Post-Audit Adjustments
- Reclassification Entries: Moving transactions between accounts (e.g., current to non-current assets) without affecting net income.
- Correcting Entries: Fixing clerical mistakes, mathematical errors, or omissions (e.g., missed accruals, depreciation).
- Tax Adjustments: Aligning financials with tax laws, such as adjusting deferred taxes.
- Prior Year Adjustments: Correcting errors from a closed year by adjusting the current year's beginning fund balance.
Why They Happen- Errors & Omissions: Simple mistakes, missed entries, or misinterpretations of transactions.
- Accounting Standard Compliance: Ensuring adherence to GAAP or other regulations (e.g., revenue recognition, depreciation).
- Cut-off Issues: Transactions recorded in the wrong period