The Cash Flow Statement is one of most essential financial reports produced at end of the accounting period. It is used to complement the information in the Balance Sheet and Income Statement and gives a different picture of a business entity. Its main purpose is to show the inflows and outflows of cash. This flows are separated into three sections (Operating, Investing, Financing) to give users a more detailed breakdown of the activities that produced these results.
The Sarbanes Oxley Act of 2002 mandates that management of public companies will evaluate the effectiveness of its internal control system over its financial reporting. Specifically under section 404 of the Sarbanes Oxley Act, it delegates that management needs to provide statements in its annual report stating that:
1- “Management is solely responsible for the establishment and maintenance of a solid system of internal control” and
2- “Management’s assessment of the effectiveness of its internal control system”
Schedule A – Itemized deductions is a highly complicated tax schedule. It is probably one of the most revered and challenged tax schedules developed by the Internal Revenue Service (IRS). Schedule A is a perfect example of how the tax law accommodates every personal and business financial transaction.