If Management Fails to Provide Adequate Justification for a Change

question 69

Multiple Choice

If management fails to provide adequate justification for a change from one generally accepted accounting principle to another,the auditors should

• A) add an additional paragraph and express a qualified or an adverse opinion on the entity's financial statements for lack of conformity with generally accepted accounting principles.
• B) disclaim an opinion on the entity's financial statements because of uncertainty.
• C) disclose the matter in an additional paragraph but not modify the opinion paragraph on the entity's financial statements.
• D) neither modify the opinion on the entity's financial statements nor disclose the matter because both principles are generally accepted accounting principles.

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Definitions:

Focusing On Narrow Areas

The practice of dedicating efforts or resources towards a specific and limited field of work or study to achieve expertise or efficiency.

Externalizing

Projecting one's own feelings, responses, or thoughts onto the external world or other people.

Collaborative Computing

Collaborative computing refers to technologies and practices that enable individuals to work together on shared tasks or projects, typically in a digital environment.

Broader Participation

Involvement of a wider range of individuals or groups in a decision-making process or project, aiming to enhance inclusivity and diversity.