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Chapter 5
Why You Can Trust Your Reports
How do I know these numbers are real?
18 min read
This is real
"Marcus acquires a business with clean audited accounts. Six months in, the real picture emerges — and the audit didn't catch it."
— Marcus, Regional Director
Key concepts
Concept 1
GAAP vs. IFRS
Two main accounting frameworks. Which one your business uses changes how revenue, leases and assets get recognised.
Concept 2
What audits confirm
An audit confirms the numbers follow the rules — not that the business is healthy or that judgement was sound.
Concept 3
How to help your finance team
Submit on time. Code correctly. Flag estimates. Good managers make finance's job easier.
Flashcard deck
Tap a card to flip.
Knowledge check
Q1
An audit primarily confirms:
Q2
GAAP and IFRS are:
Q3
Why should you know which framework your business uses?
Red flag alert
Audited ≠ accurate. Know which accounting policies your business uses and where judgement was applied.
Questions to ask your finance team
- 1.What accounting standards does our business follow — GAAP or IFRS?
- 2.Are we audited? When was our last audit, and were there any findings?
- 3.What's the month-end deadline for submitting information?