Meaning of the term accounting principles

Assignment Help Accounting Basics

Reference no: EM13761275

Case: Generally Accepted Accounting Principles

At the completion of the Darby Department Store audit, the president asks about the meaning of the phrase "in conformity with generally accepted accounting principles," which appears in your audit report on the management's financial statements. He observes that the meaning of the phrase must include more than what he thinks of as "principles."

Required:

Explain the meaning of the term accounting principles as used in the audit report. (Do not in this part discuss the significance of "generally accepted.")
The president wants to know how you determine whether or not an accounting principle is generally accepted. Discuss the sources of evidence for determining whether an accounting principle has substantial authoritative support.
The president believes that diversity in accounting practice will always exist among independent entities despite continual improvements in comparability. Discuss the arguments that support his belief.

Reference no: EM13761275

Questions Cloud

Unmodified opinion on the current year : Expressed an unmodified opinion on the current year's financial statements when fees for the prior year's audit were unpaid. Recommended a controller's position description with candidate specifications to an audit client.

Fully support customers after the sale using the internet : Describe and discuss what needs to be considered to fully support customers after the sale using the Internet.

What were the most compelling topics learned in course : How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified?

Evaluate how the values of the ceo : Analyze the CEO's leadership style and philosophy, and how the CEO's leadership style aligns with the culture and examine the CEO's personal and organizational values - Examine the CEO's personal and organizational values.

Meaning of the term accounting principles : Explain the meaning of the term accounting principles as used in the audit report. (Do not in this part discuss the significance of "generally accepted.")

Product life cycle and the bcg matrix into one model : Some authors have combined the product life cycle and the BCG matrix into one model. How would you combine them? What would some of the advantages of this combined model be?

Discrimination vs religious belief : Elaine Huguenin is a photographer in New Mexico who declined to photograph a same-sex commitment ceremony because creating images of that event would have violated her religious beliefs about marriage. A discrimination complaint was filed against Ela..

How would you approach the physician : How would you approach the physician? What are the reasons for the unavailability of certain pharmaceutical items because of third-party payer reimbursement schemes?

International accounting standards : What are at least three International Accounting Standards? Are these standards the same as U.S. standards? Explain your response. Is it to have global standards? Explain your responses.

User Account

All Pages