Auditors are required to reference consistency in their report when there are changes in
A) Accounting estimates.
B) The format of the statement of cash flows.
C) The classification of financial statement amounts.
D) Accounting principles.

Question

Quizplus · Accepted Answer

Consistency refers to the consistent application of accounting principles from one period to the next. Therefore, auditors are required to reference consistency in their report when there are changes in accounting principles. Changes in accounting estimates, the format of the statement of cash flows, and the classification of financial statement amounts do not impact consistency.

Auditors Are Required to Reference Consistency in Their Report When