Financial Statement / Audit Report Review - Research Paper Example

statements of the Maryland Local Governments is performed in every financial year and the financial statement is prepared as per the ‘Generally Accepted Auditing Standards’ (GAAS). Moreover, the Maryland Local Government has set up guidelines to provide additional information regarding accounting, auditing report and reporting of financial information (Department Of Legislative Services, 2009). With this objective, the research is focused on analyzing the different financial and audited reports of Maryland Local Government.

Elaborating the financial position of the entity and accordingly, analyzing the causes that may have led to such positioning. ‘Generally Accepted Accounting Principles’ (GAAPs) are uniform standards used to measure financial accounting and reporting within Maryland Local Government. In order to enhance the internal control structure and the concept of reasonable assurance recognition within the organization the accounting standards are maintained in accordance with the GAAP standards. To implement cost control and proper valuation of cost as well as benefits requirement of the management, the organization follows the GAAP principles.

Through the narrative overview and detailed analysis of the financial statements as specified under GAAP, the governmental ensures in fulfilling the societal needs (Office of Financial Management, 2013; City of Aberdeen, 2012). As per the legislative, the state presents two basic government financial statements with the motive to meet the economic requirement efficiently. In order to audit general funds as well as other funds, the two statements used by the government bodies are “Statement of Net Position” and “Statement of Activities”.

The “Statement of Net Position” is used to display the financial position of the government as well as its constituent units. Additionally, the Statement of Activities identifies the extent to which each major program to be undertaken by the government is