In which publicly-filed document is an auditor most likely to find information about a potential client's financial trends?
A) Form 8K.
B) Management discussion and analysis section of the Form 10K.
C) Proxy statements.
D) Engagement letter.

Question

Quizplus · Accepted Answer

The Management discussion and analysis (MD&A) section of the Form 10K is where a potential client's financial trends are most likely to be found. This section provides information on a company's financial performance, liquidity, and capital resources, and often includes charts and graphs that illustrate trends over time. Therefore, an auditor would be most likely to find the information they need in this section to evaluate a company's financial health.

In Which Publicly-Filed Document Is an Auditor Most Likely to Find