What is the underlying principle of substance over form? a) Economic substance dictates treatment over legal form b) Legal requirements override treatment accounting accounting c) Both legal and economic aspects must be equal d) Form always determines substance

What is the underlying principle of substance over form? a) Economic substance dictates treatment over legal form b) Legal requirements override treatment accounting accounting c) Both legal and economic aspects must be equal d) Form always determines substance

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 19CYBK

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Explanation of Question

What is the underlying principle of substance
over form?
a)
Economic
substance dictates
treatment over legal form
b) Legal requirements override
treatment
accounting
accounting
c) Both legal and economic aspects must be
equal
d) Form always determines substance

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