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:

Rajput Painting

A style of Indian painting, evolved and flourished in the royal courts of Rajputana, primarily depicting epic themes, court scenes, and landscapes.

Krishna

A major deity in Hinduism, worshipped as the eighth avatar of the god Vishnu and celebrated for his teachings in the Bhagavad Gita.

Qutb Minar

A UNESCO World Heritage Site located in Delhi, India, known as the tallest brick minaret in the world, built in the early 13th century.

Soaring Height

Achieving a very high level, elevation, or degree, often figuratively in terms of ambition, achievements, or physical structures.