The common set of standards and procedures by which audited financial statements are prepared is known as:

A) The matching principle.
B) The cash flow identity.
C) Generally Accepted Accounting Principles (GAAP) .
D) The Freedom of Information Act (FOIA) .
E) The 1993 Omnibus Budget Reconciliation Act.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards used in financial reporting.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, essential for assessing financial health.

Audited

The process of officially inspecting an individual's or organization's accounts by an independent body to ensure accuracy and compliance with laws and regulations.