A Company Has Changed Its Method of Inventory Valuation from an Unacceptable

question 1

Multiple Choice

A company has changed its method of inventory valuation from an unacceptable one to one in conformity with generally accepted accounting principles. The auditor's report on the financial statements of the year of the change should include

• A) no reference to consistency.
• B) a reference to a prior period adjustment in the opinion paragraph.
• C) an explanatory paragraph that justifies the change and explains the impact of the change on reported net income.
• D) an explanatory paragraph explaining the change.

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Definitions:

Indifferent To Pain

A condition or state in which an individual does not perceive or respond emotionally to pain in a typical manner.

Violent Crimes

Offenses that involve force or threat of force, including murder, rape, robbery, and assault.

Catatonia

A psychiatric condition marked by abnormal movements and behaviors, including stiffness, mutism, and stupor.

Unresponsive

The condition or quality of not reacting or responding to external stimuli or inputs.