When There Is a Significant Change in Accounting Principle, an Auditor's

question 1049

Multiple Choice

When there is a significant change in accounting principle, an auditor's report should refer to the lack of consistency in:

• A) The scope paragraph.
• B) An explanatory paragraph between the second paragraph and the opinion paragraph.
• C) The opinion paragraph.
• D) An explanatory paragraph following the opinion paragraph.

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Definitions:

Comparative Inferences

The process of drawing conclusions based on comparisons between different sets of data or situations.

Productivity Criterion

A measure or standard used to evaluate the efficiency and effectiveness of a task or process.

Comparative Reasoning

A logical process that involves comparing similarities and differences among entities or scenarios to form a conclusion or determination.

Comparative Reasoning

The process of making judgments or drawing conclusions based on the comparison of different entities or scenarios.