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:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving weight to some data points more than others.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from total sales revenue.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first ones sold; stands for Last-In, First-Out.

Physical Count

The process of manually counting the actual inventory on hand at a specific point in time to verify stock levels and accuracy of records.