Accounting laws memo

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Accounting rules and laws in Puerto Rico

Assuming a retail business is started which deal with sale and repair of furniture , there are various laws which must be adhered to failure to which a fine will be imposed or certificate of incorporation may be revoked . Corporation which are established in Puerto Rico are required by law to annually submit a financial report to the office of department of state . Such report should be submitted not later than 15th day of April

. In addition the report should bear proper authentication i .e should be signed by the president or vice-president of the company and the treasure or assistant treasurer . The financial statement submitted should be prepared in accordance to the general acceptable accounting principle showing the financial position of the business at the end of the period . In addition this financial report should be audited by certified public accountant who should give his opinion on whether the financial statement give a true and fair view and if they are prepared in accordance with the general acceptable accounting principle . The auditor should also state whether accounting policies have been consistently applied

The auditing of financial statement is done to ensure that the company does not under estimate or over estimate it profit with a view to defraud the government or shareholder i .e . to ensure that the financial statement show a true and fair view of financial performance of the business

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Auditing is also...