Generally accepted accounting principles provide the criteria against which the auditor measures the fairness of financial statement presentation.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) provide the standards and guidelines for preparing financial statements in a consistent and uniform manner. These principles serve as a benchmark for auditors to evaluate the accuracy and completeness of financial statements presented by an entity. Therefore, it is true that GAAP provides the criteria against which auditors measure the fairness of financial statement presentation.

Generally Accepted Accounting Principles Provide the Criteria Against Which the Auditor