When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for a public company and the auditor concurs with the change, the auditor should
A) A.
B) B.
C) C.
D) D.

Question

When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for a public company and the auditor concurs with the change, the auditor should 
A) A. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

The auditor should modify the opinion paragraph to include an explanatory paragraph referring to the change in accounting principle and disclose it in the first note to the financial statements. The auditor should also include an emphasis-of-matter paragraph in the auditor's report to draw attention to the note disclosure.

When There Has Been a Change in Accounting Principle That