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Hey guys,
This is my first post so hope you all enjoy! 😛 Since I’ll be taking AUD next month, I have been going through the AUD Ninja notes like crazy (I read them all today, not to mention twice before in the past week) and something stood out to me. When outlining professional responsibilities, the topic of a “legitimate departure from GAAP” is mentioned as being OK if going along with GAAP would cause financial statements to be misleading but must be disclosed with an explanatory paragraph (I guess an emphasis of matter paragraph with Clarity standards). I could give the exact page # if people want… the wording is a little weird to me, but I recall wondering about this topic while in undergrad audit class…
Has anyone ever encountered a “legitimate departure from GAAP” in their experience and if so, what constituted it? I just received my BS and don’t have any actual hands-on, employment-related audit experience but I’d like to get some kind of clarification (though the topic itself is probably entirely trivial when compared to everything else in the AUD section).
Thanks!
DELAWARE
AUD: 74 (7/2014) 76 (11/2014) PASSED! USED YAEGER AND NINJA
BEC: 73 (9/2014) 76 (2/2014) SO FAR SO GOOD! USED NINJA AND WILEY
FAR: Will take after tax season (can't wait)
REG: Cue overly dramatic impending-doom music (will take in 2014)
- The topic ‘What is a "legitimate departure from GAAP?" (AUD)’ is closed to new replies.