Several Sources of GAAP Consulted by an Auditor Are in Conflict

question 743

Multiple Choice

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.
• D) AICPA Technical Practice Aids.

---

Definitions:

Physical Place

A specific location or area in the real world that can be defined by physical boundaries and characteristics.

Experienced

Having gained knowledge, skill, or wisdom through participation in or exposure to events, activities, or practices.

Schema

A cognitive framework or concept that helps organize and interpret information, based on one's accumulated knowledge and experience.

Memory

The faculty by which the mind stores and remembers information.