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

question 82

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:

Selling Price

The price at which goods or services are sold to consumers.

Second-Price Auction

An auction format in which the highest bidder wins, but pays the price bid by the second-highest bidder.

Optimal Bidding Strategy

A method or plan designed to win at an auction or in a competitive context, maximizing the chance of success while minimizing costs.

True Value

The actual, inherent worth of an asset, without distortion from market factors or perceptions.