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Question: One of the responsibilities of an auditor


One of the responsibilities of an auditor is to determine the appropriate GAAP for the entity being audited. In December, 2013, GASB issued an exposure draft titled “ The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments .” The deadline for comments for the exposure draft was December 31, 2014.

Required:
a. Access the exposure draft through www.gasb.org. What was the purpose of the exposure draft and what types of organizations would be affected by it? What prompted GASB to address this issue?
b. What was the board’s initial approach to revising the hierarchy of GAAP? What was the outcome of that deliberation? Explain the board’s reasoning.
c. How is the proposed hierarchy different from the one presented in this text?


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3.99

See Answer