An Auditor Is Not Required to Tell the Reader of an Audit

question 50

True/False

An auditor is not required to tell the reader of an audit report when there has been a change in accounting principles that materially affects the financial statements.

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Definitions:

Null Hypothesis

A hypothesis that there is no effect or no difference, and it serves as a default hypothesis in statistical hypothesis testing.

Alternative Hypothesis

A statement that suggests there is a statistically significant difference between two or more data sets, contrary to the null hypothesis.

P-value

The likelihood of seeing a test statistic that is as extreme or more so than what was observed, assuming the null hypothesis is correct.

Sample Standard Deviation

A measure of variation or dispersion within a sample set of values, similar to standard deviation but specifically applied to samples rather than whole populations.