Audited financial statements will most likely be found in which of the following SEC required forms? A. The Form 6-K B. The Form 10-Q C. The Form 8-K D. The Form 10-K
The correct answer and explanation is:
Correct Answer: D. The Form 10-K
The Form 10-K is the annual report that publicly traded companies in the United States must file with the Securities and Exchange Commission (SEC). This form contains a comprehensive summary of a company’s financial performance, and it includes audited financial statements. These statements are examined and verified by independent external auditors to ensure accuracy, reliability, and compliance with generally accepted accounting principles (GAAP).
Audited financial statements found in the 10-K include the balance sheet, income statement, statement of cash flows, and statement of shareholders’ equity. The audit process ensures the integrity of the information, which is critical for investors, regulators, and analysts who rely on this data to make informed decisions. The audit opinion provided by the external auditor, often included in the report, states whether the financial statements fairly represent the financial condition of the company.
In contrast:
- Form 10-Q is a quarterly report and generally includes unaudited financial statements, although they are reviewed by auditors.
- Form 8-K is used to announce major events that shareholders should know about, such as mergers, acquisitions, bankruptcies, or changes in executive leadership. It is not primarily focused on financial reporting.
- Form 6-K is used by foreign private issuers to furnish information that is required to be made public in their home country or is otherwise significant. This form may or may not include audited financial statements, depending on the circumstances.
Therefore, for audited financial statements that reflect a company’s performance over a fiscal year, the Form 10-K is the most reliable and relevant SEC filing. It plays a central role in maintaining financial transparency in the capital markets.