When There Has Been a Change in Accounting Principles, but the Effect

question 249

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 auditor 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 auditor's report.
• D) Refer to the change in the opinion paragraph.

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Definitions:

Persuasive Messages

Communications designed to influence the attitudes, beliefs, or actions of others through argumentation or appeal.

Bad-news Messages

Communications delivered to convey disappointing, unfavorable, or negative information to recipients.

Tightening

The process of making a system or operation more efficient, often by reducing costs or eliminating unnecessary elements.

Grammatical Errors

Mistakes made in the use of grammar, affecting the clarity and correctness of written or spoken language.