For a Change in Accounting Principles That Management Does Not

question 75

True/False

For a change in accounting principles that management does not justify to the auditor,the auditor has a choice for the audit report between a qualified or an adverse opinion.

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Definitions:

Government Spending

Expenditures by the government for goods and services that government consumes for public purposes or to benefit its citizens.

Fiscal Year

A 12-month period that businesses and governments use for accounting purposes, which may or may not align with the calendar year.

Private Sector

The part of the economy that is run by individuals and companies for profit and is not under direct governmental control.