When There Has Been a Change in Accounting Principles, but the Effect

question 1

Multiple Choice

When there has been a change in accounting principles, but the effect of the change on the comparability of the financial statements is not material, the auditors should

• A)refer to the change in an explanatory paragraph.
• B)explicitly concur that the change is preferred.
• C)not refer to consistency in the report.
• D)refer to the change in the Basis for Opinion Section.

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Definitions:

Cognitive-Behavioral Therapy

A short-term psychotherapeutic treatment aiming to change patterns of thinking or behavior that contribute to people's difficulties, thus changing the way they feel.

Present Focus

The practice of being mentally and emotionally engaged in the current moment, often used as a mindfulness technique.

Rational Emotive Behavior Therapy

A form of psychotherapy that helps individuals identify and change irrational beliefs, reducing emotional pain and behavioral issues.

Distressing Feelings

Unpleasant emotional responses that can result from a wide range of situations, including stress, fear, or grief.