Is it permissible to violate generally accepted accounting principles (GAAP) when preparing reports used strictly by company management? If so, why?

Q: Once the auditor has gained a preliminary understanding of an entity’s accounting subsystem, they…

A: Explanation : A record of study and the evaluation of internal controls related to the accounting…

Q: Explain the problems associated with inappropriate accounting practices.

A: Fraud: Fraud is a malicious act committed by people to fulfill their personal benefits. In case of…

Q: Changes in accounting policies are always accounted for as prospective in application. TRUE or…

A: Accounting policies means rules, guidelines and procedures that are used for the preparation of…

Q: What are operations people’s primary complaints against the accounting procedures used in most…

A: The primary complaints against accounting departments have to do with the fact that accounting…

Q: Shareholders are extemal users of accounting information.

A: Shareholders are the owners of the company who own its share capital.

Q: Some argue that having various organizations establish accounting principles is wasteful and…

A:

Q: Which of the following is not an incentive for company managers to exercise their accounting…

A: Allowing corporate officials to manage the disclosure of accounting information through the use of…

Q: One reason that an cntity is allowed to change its accounting policy is when It is required by an…

A: Accounting Policies-  Accounting principles are the ethics that are to be followed by an accountant…

Q: S1: An entity shall not describe financial statements as complying with PFRSS unless they comply…

A: Presentation of Financial statement It is the obligatory of the firm to conceive fair view of the…

Q: 67. Who has the primary responsibility in the Application of the General Accepted Accounting…

A: Solution Concept As per the relevant auditing standards , the primary responsibility of application…

Q: IAS 37, Provisions, Contingent Liabilities and Contingent Assets was issued in 1998. The  Standard…

A: The objective of IAS 37 is to ensure proper recognition and disclosure of provisions, contingent…

Q: What are some of the most common types of accounting distortions that can arise?

A: Accounting refers to the process of examining and documenting all the financial and other…

Q: Managerial accounting reports must comply with generally accepted accounting principles. Is it true…

A: The managerial accounting reports are referred to the reports prepared by the organization to be…

Q: Which of the following arguments is not in favour of entities being required to comply with…

A: Accounting Standards are standard set of rules or practices which must be followed at the time of…

Q: Discuss whether or not conventional accounting (IASB) framework undermines the presentation of…

A: Here discuss about the details of conventional accounting framework (IASB) which are whether to…

Q: Which of the following would not be considered internal users of accounting data for a company? a.…

A: The company produces accounting data in the form of financial reports and related disclosures. There…

Q: Why do you think Accounting Standards are mandatory?

A: Definition:   International Financial Reporting Standards (IFRS): IFRS are a set of international…

Q: Which of the following statements is incorrect? Select one: a. Reports produced using management…

A: Management accounting is that branch of accounting under which financial accounting information is…

Q: Which of the following statements about GAAP is not true? O a. GAAP impacts how companies report and…

A: GAAP is the set of generally accepted accounting principles, which tell about what are the rules,…

Q: Management accounting and financial accounting differ in that management accounting information is…

A: Management accounting and financial accounting are very much similar and differ mainly in two…

Q: If the financial statements have been prepared using the going concern basis of accounting but, in…

A: ISA 570- Going concern - The ISA deals with the auditor’s responsibilities relating to management’s…

Q: Which of the following circumstances may create intimidation threats? a) Threat of dismissal or…

A: Please see the next step for the solution

Q: How do the subject matter of reports and the verification of reports differ between financial…

A: Both financial and managerial reporting have different scope and objectives .Detail explanation…

Q: Which of the following statements is incorrect?A. The practice of management accounting is fairly…

A: Managerial accounting seems to be the discipline of finding, monitoring, analyzing, analyzing, and…

Q: What is the indirect effect of a change in accounting policy? Briefly describe the approach to…

A: Here is the answer :

Q: Why should the responsibility for maintaining the accounting records be separated from the…

A: It has generally been seen that in large organizations, the responsibility for operating the…

Q: QUESTION 6 Which of the following services is not an example of a nonassurance service? O A The…

A: The audit services related to the internal audit domain are simply known as non-assurance services.…

Q: When is it permissible to violate generally accepted accounting principles (GAAP)

A: Certain types of information must be disclosed in a company's audited financial statements in…

Q: 13. If the financial statements provided by a company includes all information, depicted without any…

A: Net profit means the difference between the income and expenses. Financial statement means the…

Q: The Sarbanes-Oxley Act (SOX) requires top management of companies to sign a report certifying that…

A: The Sarbanes-Oxley Act (SOX) does not mandate that a company's top management sign a report…

Q: How might management and internal auditors assess each one of the following? I. The independence…

A: •Auditor shall review board work to determine independent directors number, •Estimate minutes to…

Q: How does the concept of consistency aid in the analysis of financial statements? Why type of…

A: General accepted accounting principles means those set of standards which is followed while…

Q: Which of the following is not a provision of the Sarbanes-Oxley Act as to the responsibility of a…

A: Solution: The Sarbanes–Oxley Act of 2002 is a United States law that mandates certain practices in…

Q: 7. Which of the following best describes generally accepted accounting principles?" A. The…

A: Solution: The statement that best describes generally accepted accounting principles is "The…

Q: what are the accounting standards codification and how companies apply them to their activities?

A: Accounting standard: It is a set of basic rules and principles which is set by the Financial…

Q: Which of the following is correct criticism on the positive accounting theory? O a. It gives…

A: Positive Accounting Theory - It is branch of an academic accounting research that explain and…

Q: Why is a system of internal control not able  to overcome collusion by employees?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Even though reporting entities are required to comply with accounting standards, are they also…

A: The Accounting Standards provide the framework within which a firm prepares its books of accounts by…

Q: Which of the following statements is false? a.Financial accounting must conform to GAAP.…

A: Financial and managerial accounting both are branches of accounting wherein financial accounting is…