For Which of the Following Events Would an Auditor Issue

question 14

Multiple Choice

For which of the following events would an auditor issue a report that does not include any reference to comparability?

• A)A change in the method of accounting for inventories.
• B)A change from an accounting principle that is not generally accepted to one that is generally accepted.
• C)A change in the service life used to calculate depreciation expense.
• D)A correction of a material misstatement in previously issued financial statements.

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Definitions:

Introduction

The beginning part of a document or speech that provides a background, sets the context, or introduces the main themes.

Report Introduction

An initial section that outlines the purpose, scope, and context of a report.

Feasibility Report

A document that assesses the practicality of a proposed plan or project.

Justification Report

Detailed written arguments recommending a course of action backed by research and analysis.