For Which of the Following Events Would an Auditor Issue

question 42

Multiple Choice

For which of the following events would an auditor issue a report that does not include any reference to consistency?

• A) A change in the method of accounting for inventories.
• B) A change from an accounting principle that is not generally accepted to one that is generally accepted.
• C) A change in the service life used to calculate depreciation expense.
• D) A change in accounting principle without reasonable justification from management.

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Definitions:

Reactants

Materials that exist before a chemical reaction starts and are used up to create end products during the reaction.

Hydrogen Ion Acceptor

A hydrogen ion acceptor, often a base in chemical terms, is a compound that is capable of accepting a hydrogen ion (H+) from another compound, thus participating in neutralization or buffer reactions.

FAD

Flavin adenine dinucleotide, a redox-active coenzyme associated with various proteins and involved in several important enzymatic reactions in metabolism.

ADP

Adenosine diphosphate, a molecule involved in energy transfer within cells and plays a crucial role in metabolism.