Generally Accepted Accounting Principles

Generally Accepted Accounting Principles - statement...

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Generally Accepted Accounting Principles (GAAP) Securities and Exchange Commission (SEC) – the U.S. government agency that determines the financial statements that public companies must provide to stockholders and the measurement rules that they must use in providing those statements. Financial Accounting Standards Board (FASB) – the private sector body given the primary responsibility to work out the detailed rules that become GAAP. Responsibility for the Financial Statements Management: the management of the entity prepares financial reports and is responsible for the financial statement information. The report of management: indicates management’s primary responsibility for financial
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Unformatted text preview: statement information and the steps to ensure the accuracy of the companys records. Auditor: examines the financial reports to ensure that they are fairly presented and conform with GAAP. Auditors report: describes the auditors opinion of the fairness of the financial statement presentations and the evidence gathered to support the opinion. Clean (unqualified): the F/S are presented in accordance with GAAP Qualified: the F/S are not fairly presented American Institute of certified Public Accountants (AICPA): a national professional organization that sets professional requirements for CPAs. 15...
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