In Which of the Following Should an Auditors' Report Refer

question 141

Multiple Choice

In which of the following should an auditors' report refer to the lack of consistency when there is a change in accounting principle that is significant?

• A)The Opinion on the Financial Statements section.
• B)The Basis for Opinion section.
• C)Both the Opinion on the Financial Statements section and the Basis for Opinion section.
• D)An explanatory paragraph.

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Definitions:

Ending Equity

The value of ownership in a company at the end of an accounting period, calculated as assets minus liabilities.

Dividends Paid

The actual cash distributed to shareholders out of the corporation’s earnings in a particular period.

Stockholder Investments

Funds provided by investors to a corporation in exchange for ownership stakes, typically in the form of shares of equity.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, reflected on a company's balance sheet.