WHAT IS AN INDEPENDENT ACCOUNTANT?
The article presents information related on the independent accountant in the accounting profession. The requirement that financial statements prepared in connection with the issue of securities be certified by an independent accountant was incorporated in the Securities Act of 1933. The act provides that a detailed balance sheet certified by an independent public or certified accountant of a recent date must be submitted as a part of the registration statement. A profit-and-loss statement similarly certified must also be submitted, showing expenses and income for the latest fiscal year of the registrant and for each of the two preceding fiscal years. If the date of filing the registration statement is more than six months after the close of the last fiscal year, a statement must be submitted covering the period from the dose of the fiscal year to the date of the most recent balance sheet filed. If he is to discharge his obligations to the public, the accountant who certifies the financial reports must be independent because the reports are largely a matter of considered opinion. To perform his function of certifying the balance sheet and the statement of profit and loss, the accountant must investigate the financial condition of the company from a detached and independent point of view.
- DOI
- 10.2308/tar-7056733
- Volume
- 16 (4)
- Pages
- 391-401
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref