The Professional Bodies' Ethical Rules Have the Force of Law

question 26

True/False

The professional bodies' ethical rules have the force of law applicable to auditing standards.

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Definitions:

Adjusting Entries

Final journal recordings at the close of an accounting spell to assign revenues and expenditures to the factual period of occurrence.

Supplies

Materials and goods used in the operation of a business, often consumable and regularly replaced.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage that extends over a future period.

Depreciation Expense

The orderly apportioning of the expense of a concrete asset over its expected lifetime, illustrating its decline in value as time progresses.