The set of standards used in preparing the historical financial statements, such as GAAP or IFRS, is referred to as ________.
A)the applicable financial reporting framework
B)Generally Accepted Auditing Standards (GAAS)
C)material modifications
D)a review of historical financial statements

Question

Quizplus · Accepted Answer

The applicable financial reporting framework refers to the set of standards and guidelines used to prepare the historical financial statements, such as GAAP or IFRS. Generally Accepted Auditing Standards (GAAS) are the set of standards followed by auditors during the audit process, and material modifications refer to changes made to the financial statements. A review of historical financial statements refers to a specific type of engagement or service provided by accountants.

The Set of Standards Used in Preparing the Historical Financial