When an Auditor Is Trying to Determine How Changes Can

question 31

Multiple Choice

When an auditor is trying to determine how changes can affect consistency and/or compatibility, he should keep in mind that:

• A) changes that affect comparability but not consistency require an explanatory paragraph.
• B) items that materially affect the comparability of financial statements requires a disclaimer of opinion.
• C) changes that affect consistency require an explanatory paragraph if they are material.
• D) changes that involved comparability or consistency only need to be mentioned in the footnotes.