Which of the Following Is False Regarding Compliance with GAAP

question 32

Multiple Choice

Which of the following is false regarding compliance with GAAP and GAAS?

• A) Failure to comply with GAAP and GAAS will almost certainly constitute a breach of duty.
• B) Compliance with GAAP and GAAS does not automatically mean that the duty of care has been met.
• C) In some circumstances, a reasonable, competent accountant would do more than GAAP or GAAS requires.
• D) GAAP standards are established by the Financial Accounting Standards Board, and GAAS standards are established by the American Institute of Certified Public Accountants.
• E) State statutes may not impose additional legal requirements on accountants beyond GAAP and GAAS.

---

Definitions:

Policing Behavior

Actions taken by individuals within a group to enforce social norms or rules, often to maintain group harmony and cooperation.

Reproductive Skew

A concept in biology that describes the unequal distribution of reproductive opportunities among individuals within a group or population.

Direct Fitness

The genetic contribution an individual makes to the next generation through its own offspring.

Polyandry

A mating system where a female has multiple male partners over a breeding season, uncommon among mammals but observed in some species.