When There Has Been a Change in Accounting Principles,but the Effect

question 74

Multiple Choice

When there has been a change in accounting principles,but the effect of the change on the comparability of the financial statements is not material,the auditors should

• A) refer to the change in an emphasis-of-matter paragraph.
• B) explicitly concur that the change is preferred.
• C) not refer to consistency in the report.
• D) refer to the change in the opinion paragraph.

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Definitions:

Selfless Action

An act performed with no expectation of reward or recognition, often motivated by a desire to help or benefit others.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Dissenting Engineers

Engineers who disagree with the majority opinion within their professional community, often raising ethical, safety, or procedural concerns.

Space Shuttle Challenger

The NASA space shuttle that tragically broke apart shortly after its launch on January 28, 1986, leading to the death of all seven crew members.