Wiley Practitioner's Guide to GAAS 2022

APPENDIX C:DEFINITIONS OF TERMS—AR-C STANDARDS

Analytical procedures.  Evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data. Analytical procedures also encompass such investigation, as is necessary, of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.

Applicable financial reporting framework.  The financial reporting framework adopted by management and, when appropriate, those charged with governance, in the preparation and fair presentation of the financial statements that is acceptable in view of the nature of the entity and the objective of the financial statements or that is required by law or regulation.

Basic financial statements.  Financial statements excluding supplementary information and required supplementary information.

Comparative financial statements.  A complete set of financial statements for one or more prior periods included for comparison with the financial statements of the current period.

Designated accounting standards-setter.  A body designated by the Council of the AICPA to promulgate accounting principles generally accepted in the United States of America pursuant to the “Compliance with Standards Rule” (et sec. 1.310.001) and the “Accounting Principles Rule” (et sec. 1.320.001) of the AICPA Code of Professional Conduct.

Emphasis-of-matter paragraph.  A paragraph included in ...