Best Practice » Reporting » Audit Committee Best Practices » Quarterly Review and Discussion of Financial Statements and Disclosures » Quarterly Review and Discussion of Financial Statements and Disclosures
Quarterly Review and Discussion of Financial Statements Disclosures
- the company’s business, overall business environment and risks, including business and industry trends, the company’s competitive position and strategy and how the company is affected by current economic conditions;
- analyst and press reports, and competitors’ statements, about the company, its competitors and its industry, and how the company is responding to relevant issues and risks;
- differences in reported versus planned results;
- how the company’s results differ from its competitors;
- the impact of the loss of a significant customer or supplier;
- seasonality effects;
- the impact of items that are not likely to be recurring;
- segments of the company’s business that have a disproportionate impact on the company’s revenue and results of operations;
- the company’s liquidity situation, including the potential effects of off- balance sheet arrangements, covenants in debt and other agreements and trading activities;
- any related-party transactions;
- the risk of misstatements in the company’s financial statements or in MD&A;
- risks related to the creditworthiness of the company and its customers;
- the impact of changes in company sales policies (for example, the level of discounts given to customers or the length of customer payment periods);
- the volume of sales transactions closed near the end of each quarter;
- the existence of any reciprocal or barter transactions;
- the company’s investments in customers or suppliers;
- the existence of any transactions that raise form over substance issues;
- the company’s creation of any special purpose entities;
- the company’s policies about managing and assessing risk; and
- the status of legal and regulatory matters (also discuss with inside and/or outside legal counsel);
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