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What is the primary reason a government entity would want to look at a company's financial statements?

 a. To look whether ethical standards meeting expectations

 b. To determine if the company is committing tax fraud or evasion

 c. To determine if a company has an offshore bank account

 d. To determine tax liability

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Question ajoutée par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة
Date de publication: 2016/02/01
Utilisateur supprimé
par Utilisateur supprimé

D - The Government requires Financials Statements to determine if tax declared was indeed correct and in some countries it has become compulsory to submit your F.S. along with your tax return.

 

Muhammad Mujtaba Shafique
par Muhammad Mujtaba Shafique , RJ , Dream Fm106

i think it should be d option, coz govt only determines tax liability and its not govt job to find out evasions rather its more of a investigation oriented thing

Anas Touqan
par Anas Touqan , مدير قسم المحاسبة , شركة التكامل الغذائي للتجارة والتسويق

b. To determine if the company is committing tax fraud or evasion 

 

Abdulbaset Anam
par Abdulbaset Anam , مدقق حسابات , شركة اللاحجي وانعم لتدقيق الحسابات والاستشارات المالية

 d. To determine tax liability

 

Alaa Aly Amin Azab Salhin
par Alaa Aly Amin Azab Salhin , Senior Accountant , الشركة العربية للتسويق ( يورو مارشيه )

 a. To look whether ethical standards meeting expectations

 

Sunil Kumar G
par Sunil Kumar G , Finance Manager , E M Products

Option b. To determine if the company is committing tax fraud or evasion and also to see that financial statements show the correct state of affairs of the assessee so that the interests of the investors and public are safe-guarded.

Julia Kolesnikova
par Julia Kolesnikova , Financial Director , Ariston Thermo Rus (subsidiary Ariston Thermo Group (Italy))

In our country - the first and the only one correct answer - D. But I would add another version - to check the going concern principle is the most important one...

abdulaziz khorshid
par abdulaziz khorshid , CREDIT MANAGER , RASHED ABDUL RAHMAN ALRASHED

b & d are correct ............

Mohamed matar
par Mohamed matar , Finance Manager , ASG Group

 b. To determine if the company is committing tax fraud or evasion

d. To determine tax liability

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