How is use of an applicable accounting framework enforced via legislation?
A)The Canada Business Corporations Act and many provincial incorporating acts require that financial statements be prepared in accordance with CAS as set out in the CPA Canada Handbook.
B)PAs who do not prepare financial statements in accordance with such frameworks are expelled from their professional association.
C)tax authorities may sue corporations who do not prepare their financial statements in accordance with such frameworks.
D)financial executives may be sued if the financial statements prepared by their company are not in conformance with such frameworks.

Question

Quizplus · Accepted Answer

The Canada Business Corporations Act and many provincial incorporating acts require that financial statements be prepared in accordance with a specific accounting framework. This standard is set out in the CPA Canada Handbook, which is adopted as regulation by the appropriate governing bodies. Failure to comply with these regulations can result in legal action and penalties for non-compliance.

How Is Use of an Applicable Accounting Framework Enforced Via