What are IFRS/US GAAP Compliant Financial Statements?

1. Statement of Financial Position (Balance Sheet): This statement presents a company's assets, liabilities, and shareholders' equity at a specific point in time.

2. Statement of Profit or Loss and Other Comprehensive Income: This statement summarizes a company's revenues, expenses, gains, and losses for a specific period.

3. Statement of Changes in Equity: This statement details the changes in a company's shareholders' equity during a period.

4. Statement of Cash Flows: This statement outlines the cash inflows and outflows of a company categorized by operating, investing, and financing activities.

5. Notes to the Financial Statements: These notes provide additional details and explanations about the information presented in the main financial statements. They are crucial for a complete understanding of the company's financial position and performance.

Preparing for an Audit:

For an audit, the financial statements need to be prepared with the intention of undergoing an external audit by a qualified auditor. This means the statements should be:

• Fairly Presented: The statements should accurately reflect the company's financial position and performance in accordance with IFRS/US GAAP.

• Free from Material Misstatement: No significant errors or omissions should exist in the statements.

• Supported by Sufficient Audit Evidence: The company should maintain proper accounting records and documentation to support the information presented in the financial statements.

Role of the Auditor:

The auditor's role is to provide an independent opinion on whether the financial statements are fairly presented in accordance with IFRS/US GAAP. The auditor will perform various procedures to assess the accuracy and completeness of the financial statements and issue an audit report expressing their opinion.

Additional Considerations:

• The specific requirements for IFRS/US GAAP compliance can vary depending on the company's size, industry, and jurisdiction.