In Canada,when There Has Been a Change in Accounting Principles

question 37

Multiple Choice

In Canada,when there has been a change in accounting principles and the effect of the change has been properly disclosed,the auditor should ________.

• A)refer to the change in an explanatory paragraph
• B)explicitly concur that the change is preferred
• C)issue an unqualified opinion
• D)refer to the change in the opinion paragraph

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Definitions:

Minimum Efficient Scale

The smallest quantity of output at which long-run average cost reaches its lowest level, allowing a firm to fully exploit economies of scale.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

Increases in cost per unit when output is expanded, often due to inefficiencies arising from becoming too large.

Certified Public Accountants

Professionals who have passed the CPA examination and met all other state certification requirements, authorized to provide accounting services to the public.