If There Is a Deviation in the Statements' Preparation in Accordance

question 151

Multiple Choice

If there is a deviation in the statements' preparation in accordance with GAAP and another accounting principle was applied on a basis that was not consistent with that of the preceding year,

• A) the auditor must choose which modification to include in the audit report.
• B) only the most material modification can be disclosed.
• C) more than one modification should be included in the report.
• D) none of the above.

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Definitions:

Financial Liability

A financial obligation or amount owed by an individual or entity to another individual or entity.

Direct Communication

A method of conveying messages or information straightforwardly between parties without intermediaries.

Direct Marketing

A type of advertising strategy that sends promotional messages directly to potential customers without the use of intermediary media.

Personal Selling

The practice of directly interacting with potential buyers to present products or services, understand their needs, and influence their purchasing decisions.