How Is Use of an Applicable Accounting Framework Enforced Via

question 6

Multiple Choice

How is use of an applicable accounting framework enforced via legislation?

• A) The Canada Business Corporations Act and many provincial incorporating acts require that financial statements be prepared in accordance with GAAS as set out in the CPA Canada Handbook.
• B) PAs who do not prepare financial statements in accordance with such frameworks are expelled from their professional association.
• C) Tax authorities may sue corporations who do not prepare their financial statements in accordance with such frameworks.
• D) Financial executives may be sued if the financial statements prepared by their company are not in conformance with such frameworks.

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Definitions:

Outsourcing

The practice of hiring third parties to handle tasks traditionally performed within the company, often to save costs or access specialized expertise.

Payroll Administration

The process involved in managing the compensation of employees, including salary disbursement, tax withholding, and record-keeping.

Benefits Administration

This involves managing and overseeing an organization's employee benefits program, including health insurance, retirement plans, and other perks, ensuring compliance and satisfaction.

Employee's Skills

The abilities, knowledge, and competencies that individuals bring to their workplace roles, contributing to the organization's success.