Financial Reporting and Financial Reporting Irregularities

Financial reports are the mechanism by which benefits are allocated to owners and others in the vast majority of business operations.  Shareholders in large corporations have access to detailed, audited financial statements for a long period of time through the Securities & Exchange Commission.

Those businesses, institutions and individuals who own shares that are not publicly traded often get less information from their investee companies.  Nonetheless, such financial reports are just as important to the investor.  Such reports may be even more important, since the SEC does not regulate the reporting of companies that do not offer securities to the public.

Our analysis of such companies focuses on economic feasibility, the exploitation of corporate opportunity, insider transactions, and reasonable value.  More concisely, we look for what may be too good to be true, too bad to be true, things that are missing and transactions at nonmarket values.  Our report to our client will highlight what works well, opportunities for improvement, prospects for the future and, where found, any transactions that benefitted insiders and transactions that seem counter to the interests of the business organization.

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Copyright © 2010 JONES & Co.
Last modified: 02/09/10