When an Auditor Is Trying to Determine How Changes Can

question 125

Multiple Choice

When an auditor is trying to determine how changes can affect consistency and and/or comparability,he should keep in mind that

• A)changes that affect comparability but not consistency require an explanatory paragraph.
• B)items that materially affect the comparability of financial statements requires a disclaimer of opinion.
• C)changes that affect consistency require an explanatory paragraph if they are material.
• D)changes that involve either comparability or consistency only need to be mentioned in the footnotes.

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Definitions:

Compliance

The act of conforming to set rules, standards, or laws.

Influence Tactic

Strategies or approaches used by an individual or group to persuade or alter the behavior of others.

Negotiate

The process of discussing to reach an agreement or compromise between parties with differing needs, desires, or perspectives.

Resolve Conflicts

The process of finding a peaceful solution to a disagreement among parties, which can involve negotiating or mediating to find a mutually acceptable solution.