Audit committee tool: Questions on non-GAAP measures
FINANCIAL REPORTING INSIGHTS |
The Center for Audit Quality recently released a new tool to help audit committees assess management's presentation, outside the audited financial statements, of performance metrics that do not conform with U.S. generally accepted accounting principles (GAAP). The publication, Questions on Non-GAAP Measures: A Tool for Audit Committees, reviews current regulation governing non-GAAP information, as well the auditor's role in this area. The questions in the tool address whether the information is transparent, consistent and comparable.