If Management Fails to Provide Adequate Justification for a Change

question 4

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 Section and Basis for Opinion Section of the report for lack of conformity with generally accepted accounting principles.
• B)disclaim an opinion on the entity's financial statements because of uncertainty.
• C)disclose the matter in an emphasis-of-matter paragraph but not modify the Opinion Section of the report.
• D)Not modify the report because both principles are generally accepted accounting principles.

---

Definitions:

Marketing Exchange

The process through which two or more parties transfer goods, services, or ideas in return for something of value.

Supply Chain Logistics

Overseeing the movement and storage of goods, services, raw materials, in-progress inventory, and final products from where they originate to where they are consumed.

Production Management

Production Management involves planning, coordination, and control of industrial processes to ensure that goods are produced efficiently, effectively, and at the right quality.

Value Proposition

A statement or promise that outlines how a product or service will add value, solve problems, or improve the situation for customers.