Audited financial statements should be presented fairly according to the substance of GAAP.

Question

Quizplus · Accepted Answer

Audited financial statements must be presented fairly in accordance with Generally Accepted Accounting Principles (GAAP), which means they must accurately reflect the financial position of the company and the results of its operations in a way that is consistent with industry standards and best practices. Any material misstatements or omissions must be corrected and disclosed in the footnotes or other accompanying documents.

Audited Financial Statements Should Be Presented Fairly According to the Substance