If Management Fails to Provide Adequate Justification for a Change

question 135

Multiple Choice

If management fails to provide adequate justification for a change from one generally accepted accounting principle to another, the auditors should

• A)Modify the Opinion on the Financial Statements section of the report for lack of conformity with generally accepted accounting principles.
• B)Modify the Opinion on the Financial Statements section and Basis for Opinion section of the report for lack of conformity with generally accepted accounting principles.
• C)disclose the matter in an explanatory paragraph but not modify the Opinion on the Financial Statements section of the report.
• D)Not modify the report because both principles are generally accepted accounting principles.

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Definitions:

Soviet Nuclear Bomb

The Soviet nuclear bomb refers to the atomic weapons developed by the Soviet Union since 1949, marking the start of the nuclear arms race during the Cold War.

South Korea

A country in East Asia, located on the southern half of the Korean Peninsula, known for its advanced technology and vibrant culture.

Member-Nations

Countries that are part of an international organization or coalition, agreeing to adhere to its rules and participate in its activities.

Douglas MacArthur

An American five-star general and Field Marshal of the Philippine Army who was Chief of Staff of the United States Army during the 1930s and played a prominent role in the Pacific theater during World War II.