If Management Fails to Provide Adequate Justification for a Change

question 61

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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