NTR full form in banking is Notification to Reader. An independent auditor or an accounting firm with no audited financial accounts sends a “Notice to Reader”. The notice states that the auditor hasn’t completed the audit of their financial statement. Auditors analyzed or compiled the client’s financial data. The Notification to Reader normally specifies that the auditor didn’t review the financial statements according to GAAS and is not able to assess their accuracy or fairness. The auditor’s role was to gather or assess the material of management and confirm the accounting practices.
What Else Should You Know About NTR?
Financial information can help banking stakeholders make better decisions, so they need to be aware of the Notice to Reader’s statements. Stakeholders must carefully read the financial statements that are not audited, and use an Notification to Reader to evaluate the performance of a company’s finances. Because auditors are limited in their function, financial statements could contain major mistakes. Therefore, stakeholders must evaluate unaudited financial statements, and then add management’s responses and questions. Stakeholders must consider audited financial statements’ credibility and comparability when evaluating the financial health of a bank and risk. In conclusion, notice to Reader statements are a source of financial information, however, users should be cautious and obtain additional proof prior to making critical banking decisions.
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