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Concern for a small business's financial statements

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Please help with the following problem.

As an investor in a small business, what are some things that may concern you regarding a firm's financial statements? How might a small business's financial statements differ from a large business's financial statements?

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In a 362 word response, the solution gives 7 reasons for concerns about small business's financial statements followed by 7 differences to a larger business's statements.

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Financial statement concerns for small business:

1. In a small business, the financial statements may be prepared 'in house' which could then lack the independence feature present in statements prepared by a CPA firm.

2. The skill level of the accounting staff may be less than that of a larger company and could be reflected in the financial statement accuracy.

3. Management of a small business may insist on using financial techniques that are not standard in the industry.

4. Fraud is often a problem in a small business, and may not be detected in the ...

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