Bill Novak is working on an audit of a U.S. GAAP client. In his review of the

Question:

Bill Novak is working on an audit of a U.S. client. In his review of the client’s interim reports, he notes that the reports are prepared on an integral basis. That is, each interim report is viewed as a part of the annual period. Is this acceptable under U.S. ? If so, explain how that treatment could affect comparisons to an IFRS company.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...