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

Auditors are required to reference consistency in their report when there are changes in accounting principles. A change in accounting principle refers to a change from one generally accepted accounting principle to another. The auditor needs to evaluate the impact of the change on the financial statements and disclose it in their report. However, changes in accounting estimates, the format of the Statement of Cash Flows, and the classification of financial statement amounts do not require a reference to consistency in the auditor's report.

Auditors Are Required to Reference Consistency in Their Report When