The AICPA's Fundamental Principles of Generally Accepted Auditing Standards Are

question 41

Short Answer

The AICPA's fundamental principles of generally accepted auditing standards are classified in three categories: _______________________ principle,_______________________ principle,and the _____________________________ principle.

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Definitions:

Analyze Transactions

The process of examining financial transactions to understand their nature, how they affect the accounts, and how they should be recorded in the accounting system.

Correcting Entries

Journal entries made to amend previously recorded transactions or entries that were made incorrectly.

Balance Sheet Account

A financial statement line item that represents the assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement Account

An account found on the income statement that records business transactions affecting the company's revenue, expenses, gains, and losses.