When an Auditor Is Trying to Determine How Changes Can

question 148

Multiple Choice

When an auditor is trying to determine how changes can affect consistency and/or comparability, he or she 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:

International Business

The buying, selling, and trading of goods and services across national boundaries.

Large Corporations

Extensive organizations known for their sizable employee count, large operational scope, and substantial market influence.