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CFA - FSA 1 Intro to FSA - Coggle Diagram

- - - - Choose between B ) evaluating a company for the purpose of making economic decisions AND C ) using financial reports prepared by analysts to make economic decisions
        
        It's flipped: companies cook, analysts critique, and the critique serves a broad range of economic decisions
- - - - The auditor found no exceptions. The statements are fairly presented in accordance with applicable accounting standards. Nothing to flag.
    - - The statements are fairly presented except for one specific, limited issue. The word “qualified” means “with a qualification,” as in a condition or exception attached to the opinion
        
        An exception to accounting standards (the company did something not allowed by GAAP/IFRS)
        
        A scope limitation (the auditor couldn’t examine something
        
        :pencil2: determine in a question Qualified OR UNQUALIFIED? Ask one question: “Is there an ‘except for’ in the sentence?” / No “except for” → unqualified (clean) / “Fair, except for [one specific thing]” → qualified
- - - - IFRS Foundation = Oversees and funds the IASB
      - IOSCO International Organization of Securities Commissions = the police and regulators’ club
        
        Goals: Protect investors / Ensure markets are fair, efficient, and transparent / Reduce systemic risk
        
        :pencil2: will trick in the working ( Eliminate systemic risk instead of reduce OR Protect users of financial statements instead of investors )
      - IASB International Accounting Standards Board = the legislature. It writes the rules
        
        develops IFRS
    - - FASB → develops US GAAP
      - SEC → US securities regulator; requires public companies to file, recognizes FASB standards
      - PCAOB → oversees auditors of public companies