Question

Explain in brief the financial reporting procedures ?

Answer 1

Financial Reporting Procedures:

The Financial Reporting Procedure ensures that financial reporting is completed in accordance with legal and ethical requirement and accepted accounting practices; completed within the required time frame(s) and forwarded to required agencies; reviewed and signed by company officers who attest to the reasonable accuracy of the information; and available for the company’s needs. The financial reporting procedure applies to the Finance and Accounting Departments.

If certification is required, both the CEO and the CFO should review the financial controls used to produce the financial statements and the financial statements themselves to ensure that no untrue statements or omissions of a material fact as of the end of the period covered by the report exist.

Financial Reporting Responsibilities:

The CFO (Chief Financial Officer) is responsible for preparing and submitting all financial statements as required by law and by company policy.

The CFO and the CEO (Chief Executive Officer) are responsible for signing all reported financial statements.

Top Management and the Board of Directors are responsible for reviewing and approving all submitted financial reports.

The Controller is responsible for providing audited financial reports to the CFO annually, and unaudited financial reports quarterly.

sent to stockholders prior to or with proxy statements and the notice of the scheduled annual stockholders’ meeting in accordance with reporting requirements.

Financial Reporting Procedure Activities

• Financial Statement Reporting Plan
• Annual Report to Stockholders
• Financial Statements for Business Operations
• Additional Financial Statement Reporting
• Public Company Quarterly Reporting
• Public Company Annual Reporting
• Improving the Financial Statement Reporting Process