When Management Does Not Provide Reasonable Justification That a Change

question 449

Multiple Choice

When management does not provide reasonable justification that a change in accounting principle is preferable and it presents comparative financial statements, the auditor should express a qualified opinion:

• A) Only in the year of the accounting principle change.
• B) Each year that the financial statements initially reflecting the change are presented.
• C) Each year until management changes back to the accounting principle formerly used.
• D) Only if the change is to an accounting principle that is not generally accepted.

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Definitions:

Purpose Of Behaviour

The underlying reason or motive behind specific actions or responses by individuals or organisms.

Psychological Research Laboratory

A controlled environment where scientists conduct studies relevant to psychology.

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An American psychologist and educator who is considered the founder of developmental psychology.

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A publication that features articles, research results, and studies in the field of psychology.