A Company Has Changed Its Method of Inventory Valuation from an Unacceptable

question 9

Multiple Choice

A company has changed its method of inventory valuation from an unacceptable one to one that complies with ASPE (Accounting Standards for Private Enterprises) .The auditor's report on the financial statements of the year of the change should include

• A)no reference to the item assuming that the change has been properly disclosed.
• B)a reference to a change in accounting principles in the opinion paragraph.
• C)an explanatory paragraph explaining the change.
• D)a justification for making the change and the impact of the change on reported net income.

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Definitions:

Technologies

The application of scientific knowledge for practical purposes, especially in industry.

Housing Crisis

A situation where the availability of affordable housing is significantly reduced, leading to increased homelessness and housing insecurity.

Debt Crisis

A situation where a country or organization is unable to pay back its borrowed money, leading to financial instability and potentially, economic decline.

Housing Prices

The amount of money required to purchase residential properties, which can fluctuate based on location, demand, and other economic factors.