Which of the Following Circumstances Should Be Recognized as a Consistency

question 39

Multiple Choice

Which of the following circumstances should be recognized as a consistency modification in the auditor's report,whether or not the item is fully disclosed in the financial statements?

• A) A change in accounting estimate.
• B) A change from an unacceptable accounting principle to a generally accepted one.
• C) Correction of an error not involving a change in accounting principle.
• D) A change in classification.

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Definitions:

Experience

The knowledge or practical wisdom gained from direct participation in events or activities, shaping one's perception and understanding.

Gravity

A fundamental force of nature by which all things with mass or energy are brought toward one another, including objects ranging from atoms to planets and galaxies.

Universal Causality

The principle that every event has a cause, suggesting a fundamental order to the universe and the predictability of phenomena.

Hume

A philosopher who contributed significantly to ethics, epistemology, and the philosophy of religion with his inquiry into human nature.