One of the responsibilities of an auditor is to determine the appropriate GAAP for the entity being

Question:

One of the responsibilities of an auditor is to determine the appropriate for the entity being audited. In December, 2013, GASB issued an exposure draft titled "The Hierarchy of Gene rally 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 ? 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?
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...