Chapter 3 - Is Your Financial Information Accurate and Reliable?

Abstract

Few documents are more crucial to lending than good old-fashioned financial statements. In today’s tight and selective lending environment, the significance of your auditor’s work, that is, the usefulness and credibility of financial statements, cannot be overstated. Through standards adopted by the accounting profession, as well as those imposed both by government and by private business, the accounting profession continues to maintain high standards and improve both the reliability and usefulness of audits. And because properly conducted audits are percussive to credit, and breathe life into the art and science of lending, credit and financial reporting operate as sides of the same coin, like pharmaceuticals research and medical research. Smart lenders do not view financial statements as inanimate, repetitive, or detached objects. After all, financial reports are dynamic.