Conclusion

Non-GAAP financial measures and KPIs are used by many companies to supplement their GAAP disclosures with amounts that portray the company’s unique story and provide insight into how management internally evaluates company performance. Given the importance of non-GAAP financial measures and KPIs in decision making, it is critical that there is clarity around how they are developed, that there is quality in their preparation, and that there is strong oversight of their reporting and disclosure. While SEC rules and the PCAOB auditing standards do not require an auditor to opine on this information, involving external auditors can contribute to its overall comparability and reliability.


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