On Which of the Following Matters Would It Not Be

question 38

Multiple Choice

On which of the following matters would it not be appropriate for the auditors to report using an explanatory paragraph?

• A)An indication that a predecessor auditor examined prior year's financial statements presented in comparative form.
• B)Procedures performed related to supplementary mineral reserve information required by the Financial Accounting Standards Board.
• C)A departure from GAAP that has a material, but not pervasive, effect on the financial statements.
• D)An updated opinion on comparative financial statements that differs from the opinion originally issued by the auditors.

---

Definitions:

Accommodation

In psychology, a cognitive process that involves altering one's existing schemas, or ideas, as a result of new information or experiences.

Piaget's Theory

A theory of cognitive development that describes how children's intellectual abilities evolve through distinct stages as they grow.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a concept developed in early childhood.

Sensorimotor Stage

The first of the four stages of cognitive development in Piaget's theory, where infants learn about the world through their sensory experiences and manipulating objects.