In Which of the Following Should an Auditors' Report Refer

question 75

Multiple Choice

In which of the following should an auditors' report refer to the lack of consistency when there is a change in accounting principle that is significant?

• A)The Auditor's Responsibility section.
• B)The opinion paragraph.
• C)An emphasis-of-matter paragraph following the opinion paragraph.
• D)An emphasis-of-matter paragraph before the opinion paragraph.

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Definitions:

Accounting Period

A specific duration of time used for financial reporting, usually quarterly or annually.

Supplies Expense

Supplies expense is the cost of consumable items used during the operating cycle of a business, such as office supplies, which are expensed as they are consumed.

Adjusting Journal Entry

Adjustments made in the financial books at the period's end to accurately distribute profits and costs to the period they belong.

Net Income

The amount of money that remains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.