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.

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Definitions:

Sales Change

The variation in the quantity of products or services sold by a company over a specific period, which can indicate market trends and business performance.

Customer-Oriented Metrics

Indicators used to measure aspects of customer satisfaction, behavior, and preferences in relation to a company's products or services.

Customer Satisfaction

A measure of how products or services meet or surpass the expectations of customers, often used as an indicator of repeat business and loyalty.

Global Segments

Refers to the division of the global market into distinct groups of customers or regions with similar characteristics or needs.