Question

discuss whether the required financial disclosures, such as Management Discussion & Analysis, Auditor’s report, etc., are sufficient to provide supplemental information to the financial statements. Is there anything missing that you would like to see? Support your response with specific examples.

Answer 1

It can be substantiated that the financial statement disclosures like Management discussion and Analysis ,the audit report have the sufficient information for fulfilling the requirements required for the disclosures.

The Management discussion and Analysis have the areas which are provided by the officers and controllers of the different departments like HR ,Finance ,Marketing ,Production and Operations etc.The audit report covers the areas like the ones which are needed for the accounting and financial perspective figures and their analysis.

The information contained in the marketing ,production and operation activities of the company are not given by the audit reports.The other areas like Future Prospects which need to be fulfilled by the management have nothing to do with the Audit Report and the management prospective and views towards growth in the industry and its progress patterns.

The information which are provided by the Management discussion and Analysis is the refined information towards marketing ,production and operation department of the company which do not disclose the secrets .So it is the management perspective and extent to disclose them or not.