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:

Separated Knowing

A critical thinking approach where the thinker remains detached and evaluates the validity of arguments without considering the context or relational aspects.

Connected Knowing

Connected knowing refers to an epistemological approach characterized by understanding and knowing through empathetic connections with others and valuing subjective experiences.

Quantitative Abilities

Skills that involve the capacity to work with numbers, understand patterns, and solve mathematical problems.

Maccoby and Jacklin

Psychologists known for their work and contributions to the study of gender differences in psychology.