What is Stock Audit?

Does a private company must be audit by a CPA? Account Question, Please Help!!?

  • If a companies stock is privately held and not traded on any stock exchange, must a CPA audit the company’s books? Must these audited statements be prepared in accordance with GAAP? I can't find the answer in my book

  • Answer:

    No, there's no requirement that a privately held company be audited by a CPA. However. For certain types of coverages, like D&O, no insurance company will give you that coverage, if you're NOT audited.

mbrcatz at Yahoo! Answers Visit the source

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What book for what class? Some business insurance policies must be audited to determine the correct premium, but I doubt any state requires private companies to be CPA audited to stay in business.

Lynn

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