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:

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth or value.

Social Acceptance

The act of a community or group receiving an individual as an adequate member of said group, often conforming to its norms, beliefs, and expectations.

Belonging

The feeling of security and support when there is a sense of acceptance, inclusion, and identity for a member within a group.

Above-Average Effect

The tendency for individuals to overestimate their abilities or qualities, particularly in comparison to others, also known as the superiority bias.