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:

A-Delta Fibres

Fast-conducting nerve fibers involved in the transmission of pain and temperature sensations.

Supertaster

An individual with a heightened sensitivity to the tastes of foods, especially bitter and sweet, due to a higher density of taste buds.

Sweet and Bitter Tastes

Basic taste sensations that enable organisms to evaluate the nutritional value of foods, with sweet generally indicating energy-rich sources and bitter indicating potentially harmful substances.

Head Cold

An informal term for a common cold that primarily affects the nose and throat.