The final paragraph of the report gives the auditors conclusion based on the results of the audit (Robert, 1996, p.An analysis of the annual statements of two companies reveal a few differences. While Caribou makes a few deviations from the GAAP in the disclosure to facilitate judgment using supplementary information, Fazer, on the other hand, does not and instead sticks to the GAAP requirements. An example is EBITDA which is the net income of Caribou Coffee Company while excluding various factors such as interest expenses, interest income, and income taxes. Fazer is a group company, therefore, its financial statements are group statements which reflect income from various subsidiaries from other countries. Caribou’s income statement, on the other hand, reflect income from only its operations in the United States where it has various coffee houses. The financial statements for both companies use the horizontal format in the presentation of their information. Additionally, both companies have disclosed their information in a clear manner in line with the provisions of both the GAAP and IAS. Auditors Standards Report of Caribou Coffee and Fazer Group.
Duarte, T. (1994). Incorporating complementary ratios in the analysis of financial statements, Accounting, Management and Information Technologies, Vol. 4, No. 3, 149-162.
Martin, E., & Roberta, A. (1999). The use of International Accounting Standards terminology, a survey of IAS compliance disclosure The International Journal of Accounting, Vol. 34, No.4, 557-570.
Robert, S. (1996). New focus for the international standards on auditing, Journal of International Accounting, Auditing and Taxation, Vol. 5, No. 1, 133-146.
Please type your essay title, choose your document type, enter your email and we send you essay samples