To determine whether generally accepted accounting principles (GAAP)were followed in the preparation of financial statements,an examination of:
A)tax documents would be performed by the IRS.
B)the company's accounting records would be performed by the SEC.
C)the financial statements and related documents would be performed by an independent auditor.
D)the financial statements and related documents would be performed by the FASB.

Question

Quizplus · Accepted Answer

A company's managers have primary responsibility for following GAAP.To provide additional assurance,some private companies and all public companies hire independent auditors to scrutinize their financial records.Auditors report whether,beyond reasonable doubt,the financial statements represent what they claim to represent and whether they comply with GAAP.The IRS,the SEC,and the FASB do not perform examinations to determine whether a company's financial statements have been prepared in accordance with GAAP.

To Determine Whether Generally Accepted Accounting Principles (GAAP)were Followed in the Preparation