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:

Hindsight Bias

The inclination to assume that one could have predicted an outcome after it has happened, commonly known as the "I-knew-it-all-along" effect.

Sexual Desire

The emotional and physiological response that leads to the interest in or craving for sexual activities or sexual objects.

Sexual Appetite

An individual's desire or drive for sexual activity and expression, which can vary greatly among people.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have predicted it beforehand, often referred to as the "I-knew-it-all-along" phenomenon.