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Today I give you seven steps to review financial statements on computer screens. I explain how to review financial statements in Word and in PDFs.
In another post titled How CPAs Review Financial Statements, I provide information about creating and reviewing financial statements, but it doesn’t provide information about doing so on computer screens. This article does.
You may find it easier to review financial statements after converting them to a PDF (rather than in Word). This makes all numbers and words fully searchable (no embedded Excel spreadsheet limitation issue).
You can use the split screen feature (click Windows, Split in Adobe Acrobat) to see the same financial statements on one screen. I usually do this on my center screen. This allows me to scroll and compare numbers in the financial statements. For instance, I compare total assets with total liabilities and equity. Or I compare equity on the balance sheet with my statement of changes in equity ending balances.
I also open a second instance of the PDF on my right-hand screen, mainly to compare my notes with the financial statements (on my center screen). Then I use control-f to locate numbers or words. For instance, if I see $456,856 for total plant, property, and equipment (on my center screen), I click on the right-hand screen, then control-f, then key in the number to find it in the notes.
I make review comments in the PDF using the comments feature in Adobe Acrobat. Then persons can respond with the reply feature in the comments field. That way, they can provide a response, whether they agree or not—and what they did if a correction was made.
Those are my ideas. What are yours?
Charles Hall is a practicing CPA and Certified Fraud Examiner. For the last thirty years, he has primarily audited governments, nonprofits, and small businesses. He is the author of The Little Book of Local Government Fraud Prevention and Preparation of Financial Statements & Compilation Engagements. He frequently speaks at continuing education events. Charles is the quality control partner for McNair, McLemore, Middlebrooks & Co. where he provides daily audit and accounting assistance to over 65 CPAs. In addition, he consults with other CPA firms, assisting them with auditing and accounting issues.
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