Purchase Solution

Darby Department Store - Auditing Report

Not what you're looking for?

Ask Custom Question

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 as "principles."

Explain the meaning of the term accounting principles as used in the audit report. (Do not 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 authority or support.

The president believes that diversity in accounting practice will always exist among independent entities despite continual improvements to comparability. Discuss the arguments that support his belief.

Purchase this Solution

Solution Preview

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 as "principles."

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

-- The meaning of the term accounting principles as used in the audit report refers to the practices and methods that the auditor has determined are utilized by the company, along with the ...

Purchase this Solution


Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce