Several sources of GAAP consulted by an auditor are in conflict as to the application of an accounting principle.Which of the following should the auditor consider to be the most authoritative?
A)CPA Canada Handbook.
B)CPA Canada Exposure Drafts.
C)Industry practice.
D)Federal legislation.

Question

Quizplus · Accepted Answer

CPA Canada Handbook is the primary source of accounting principles in Canada and is considered the most authoritative reference for an auditor. Exposure drafts are not yet authoritative, industry practice may not always align with GAAP, and federal legislation may only be relevant in certain circumstances.

Several Sources of GAAP Consulted by an Auditor Are in Conflict