Several sources of GAAP consulted by an auditor are in conflict as to the application of an accounting principle. Which of the following should the auditor consider the most authoritative?
A.
FASB Technical Bulletins.
B.
AICPA Accounting Interpretations.
C.
FASB Statements of Financial Accounting Concepts.
Suggested Answer:A🗳️
Choice "A" is correct. In accordance with the GAAP hierarchy, FASB Technical Bulletins are considered the most authoritative of the sources listed in the question. Choice "B" is incorrect. Of the sources listed, AICPA Accounting Interpretations would be considered the second most authoritative. Choice "C" is incorrect. FASB Statements of Financial Accounting Concepts are among the least authoritative sources of GAAP available to auditors. Choice "D" is incorrect. AICPA Technical Practice Aids are among the least authoritative sources of GAAP available to auditors.
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1 month, 2 weeks ago