AUD 1 -Special Purpose and Other Country Frameworks

Question 1

What are the types of special purpose frameworks? (Private company does not have to comply with GAAP) (Also known as Other Comprehensive Bases of Accounting OCBOA)

Answer 1

1) Cash basis
2) Tax basis
3) Regulatory basis
4) Contractual basis
5) Other basis

Question 2

What understanding must an auditor have before applying special purpose frameworks?

Answer 2

1) Purpose for financial statements
2) Intended users
3) Steps taken by management to determine framework

Question 3

How do you describe the title of NON-GAAP titles

Answer 3

Do NOT use GAAP terms