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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Definitions:

Extracellular Surface

The exterior part of a cell's structure, interacting with the external environment.

Carrier Proteins

Proteins involved in the movement of ions, small molecules, or macromolecules, such as glucose, across a cell membrane.

Aquaporins

Membrane proteins that serve as channels in the transfer of water, and sometimes small solutes across the cell membrane.

Active Transport

The movement of substances across cell membranes against their concentration gradient, requiring energy expenditure by the cell.