In the context of financial accounting, if a firm wants to introduce any significant changes in how it prepares its financial statements, _____.
A) it must first pay a fee to the CPA firm conducting its audit
B) it must get the changes preapproved from a district magistrate
C) it must get approval for these changes from at least ten other firms working in the same sector
D) it must first clearly identify and describe these changes as per the generally accepted accounting principles (GAAP)

Question

Quizplus · Accepted Answer

Firms must adhere to GAAP, which requires them to clearly identify and describe any significant changes in their financial statement preparation to ensure transparency and consistency.

In the Context of Financial Accounting, If a Firm Wants