An Auditor Is Not Required to Tell the Reader of an Audit

question 50

True/False

An auditor is not required to tell the reader of an audit report when there has been a change in accounting principles that materially affects the financial statements.

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Definitions:

Unlimited Life

Refers to entities, typically corporations, that are structured to continue operations indefinitely unless dissolved.

Ease of Formation

The simplicity and straightforwardness associated with establishing a new enterprise or legal entity, typically influenced by the regulatory and legal environment.

Single Tax

A system in which only one type of tax is levied, often proposed to simplify tax systems.