Identify and Describe the Generally Accepted Auditing Standards

question 9

Essay

Identify and describe the generally accepted auditing standards.

---

Definitions:

Straight-Line

A depreciation method that allocates an equal amount of the depreciable cost of an asset to each accounting period of its useful life.

Annual Rate of Return

The percentage of profit or loss made from an investment in a year, taking into account both capital gains and interest or dividends received.

Operating Expenses

Expenses incurred in the process of earning sales revenue.

Incremental Effect

The impact of a particular decision on a company's finances, considering only the changes that directly result from the decision.