Which of the Following Requires Recognition in the Auditor's Opinion

question 89

Multiple Choice

Which of the following requires recognition in the auditor's opinion as to consistency?

• A)The correction of an error in the prior year's financial statements resulting from a mathematical mistake in capitalizing interest.
• B)A change in the estimate of provisions for warranty costs.
• C)The change from the cost method to the equity method of accounting for investments in common stock.
• D)A change in depreciation method which has no effect on current year's financial statements but is certain to affect future years.

---

Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, and transmits neural signals between the brain and the body.

Growth Hormone

A peptide hormone that stimulates growth, cell reproduction, and regeneration in humans and other animals.

Metabolic Rate

The rate at which the body uses energy to maintain basic life functions such as breathing, circulation, and cell production.

Grooming Touch

a form of physical interaction used to clean, maintain, and strengthen social bonds, commonly observed in many animal species and humans.