The third reporting standard of GAAS states that the auditors opinion on the financial statements should indicate
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a. How does the auditor assess whether financial statements are in accordance with GAAP when a conclusion on GAAP is not found in the CICA Handbook Recommendations? Give an example of an accounting issue that may not be covered in the Recommendations.
b. How does the auditor assess whether financial statements are in accordance with GAAP when the CICA Handbook Recommendations allow for different accounting methods to be acceptable? Give an example of an accounting issue for which alternative acceptable accounting treatments are provided in the Recommendations.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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