Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Questions - Page 22: 16


Rule 203 is a rule of the Code of Professional Conduct that prohibits a member of the AICPA from expressing an unqualified opinion on financial statements that largely contain material departure from GAAP. AICPA members are usually required to prepare financial statements that are in accordance with GAAP.

Work Step by Step

Additionally, failure to follow rule 203 can lead to a loss of CPA's licence to practice and for that its apparent that its an extremely vital rule which requires auditors to follow the FASB standards keenly.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.