Identify the generally accepted accounting concept principle

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Problem 1: If, during the audit of a firm, the auditor discovers something of a material nature that indicates the client's financial statements are erroneous or misleading external readers should be warned of this in the auditors' report.

a- although false for most of the times, there are several exceptions detailed in Canadian GAAP
b- this is always a true statement
c- this is always a false statement
d- although true for most of the times, there are several exceptions detailed in Canadian GAAP
e- Cannot say if it is true or false given the limited information provided

Problem 2: Identify the generally accepted accounting concept principle, assumption, or constraint violated in the following situation: A company which expects to discontinue operations next month, records an equipment purchase as an increase in capital assets and plans to amortize the cost over the next ten years.

a- None of the others alternatives are correct
b- Separate Entity
c- Matching
d- Going Concern
e- Revenue recognition

Reference no: EM132764943

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