Main Components Of Al Americana's Consolidated Financial Statements 2015

An income statement, also known as a profit and loss statement shows how much money a company has spent over a period of time. It also shows the costs and expenses that are associated with earning that revenue. It is an important measure of the company’s profitability. The simple building blocks of a net income formula are revenues minus expenses equal net income.

14. In which paragraph of the standard audit report does the auditor communicate to the user that certain combining fund information in the financial statements is not part of the basic financial statements, but that such information has been subjected to auditing procedures and, in his or her opinion, is fairly presented in all material respects in relation to the basic financial statements?

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Financial statements are commonly called balance sheets, income statement, statement of owner’s equity, or statement of cash flows.

The income statement (IS) also known as the profit & loss statement provides the net gain or net loss of a business entity. The importance of the income statement is to evaluate profitability of a company (Finkler, Jones, and Koyner, 2013). The best use of the IS,

Who are the company’s outside auditors, and what was the audit fee for the last audited year?

The purpose of the Auditors report was to check the conformance of the Company financial report;

Consolidated financial statements are the statements gives a combination of the accounts of a business and all the subsidiaries during a financial period.

The “financial statements are formal reports providing information on a company's financial position, cash inflows and outflows, and the results of operations” (Hermanson, p.22). There are four main components that make up a financial statement. The four parts are, balance sheet, income statements, cash flow and, statement of owner’s equity. The balance sheets role is to define the company’s assets liabilities and revenue of the business. The income statement shows the income within the company. Cash flow reviews the position of the company by cash payments and receipts. Lastly, the statement of owner’s equity shows the amount of earnings, stock and other capitals of people in the company. (Hermanson, p.34-35).

Balance sheet: prepared from the assets, liabilities, and equity accounts. The balance sheet prepared as of a specific date, records the categories and amounts of assets employed by the business and the offsetting liabilities incurred to lenders and owners. Also called the statement of financial condition or statement of financial position, it must always balance.

The purpose of an audit is to enhance of confidence in the financial statements. An auditors opinion validates this purpose.

Who are the firm’s auditors? Do they provide a clean opinion on the financial statements?

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Pearson, 2014). The external auditors auditing client’s accounting records are qualified accountants who express true and fair vies as to whether the financial statements are present in accordance with the relevant accounting standards such as International financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP). We auditors are accountable for the financial statements to be free from material misstatement, fraud or error. As auditors of Petrol One Resources Berhad, an Oil & Gas industry service

Consolidated financial statements are the combined financial statements of a company and all of its subsidiaries, divisions, or suborganizations.

A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English including United Kingdom company law a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants.