Identify at Least Three Types of Users of Financial Statements

Essay

Identify at least three types of users of financial statements. Describe their primary use of the financial statements
and how the misstatement of those statements might injure the user.
Users of audited financial statements may include:
Management uses the audit report to determine whether the financial statements
are presented in accordance with GAAP, whether the firm is availing itself of
appropriate internal controls, and as a means of evaluating employee
performance. Misstatement of the financial statements would cause the client to
make erroneous decisions about financial position, internal controls and
employee rewards and punishments.