If a Change in Accounting Principle Has a Material Effect

question 116

Short Answer

If a change in accounting principle has a material effect on the comparability of the financial statements, then AU-C 708 requires auditors to add an_______ paragraph to the auditor's report.

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Definitions:

Nonverbal Signals

Communication methods other than spoken or written words, including gestures, facial expressions, and body language.

Principles of Psychology

Fundamental theories and concepts that form the foundation of the study of the mind and behavior.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior.

Everyday Life

The routine experiences, activities, and interactions that constitute a person's normal and day-to-day existence.