Which of the following statements regarding the requirement to follow U.S. GAAP in financial reporting is true?
A) U.S. GAAP has been adopted as federal law, so failure to follow U.S. GAAP is prosecuted through the federal court system.
B) U.S. GAAP has been adopted as state law in all 50 states, so failure to follow U.S. GAAP is prosecuted through the state court system.
C) U.S. GAAP represents a set of professional standards, and the requirement to follow U.S. GAAP is enforced through the AICPA Code of Professional Conduct.
D) Compliance with U.S. GAAP is not enforced; it is a voluntary choice made by most companies and by most professional accountants
Correct Answer:
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