Changes in a Client's Accounting Choices Either Affect "Consistency" in the Application

question 17

Essay

Changes in a client's accounting choices either affect "consistency" in the application of GAAP or they do not.For each item listed below,state whether the item affects consistency and identify the effect the change will have on the audit report.
1.Change in accounting estimate.
2.Correction of an error in principle.
3.Change in reporting entity.
4.Correction of an error that does not involve an accounting principle.
5.Change in accounting principle.
6.Change in classification and reclassification.
7.Change expected to have a material future effect.

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Definitions:

Species Threat

A situation or condition that endangers the survival or well-being of a particular species, often due to human activities or environmental changes.

Water Pollution

The contamination of water bodies, such as lakes, rivers, oceans, and groundwater, caused by harmful substances directly or indirectly discharged into them, leading to adverse effects on aquatic life and human health.

Habitat Island

A patch of land, typically surrounded by a contrasting landscape, that serves as a refuge for species and maintains biodiversity.

National Park

A protected area of natural importance, established by a government, aimed at conservation and offering recreation opportunities.