When there has been a change in accounting principles, but the effect of the change on the comparability of the financial statements is not material, the auditors should
A)refer to the change in an emphasis-of-matter paragraph.
B)explicitly concur that the change is preferred.
C)not refer to consistency in the report.
D)refer to the change in the Basis for Opinion Section.

Question

Quizplus · Accepted Answer

When there has been a change in accounting principles, but the effect of the change on the comparability of the financial statements is not material, the auditors are not required to refer to consistency or the change in their report. This is because the financial statements remain comparable despite the change, and therefore, there is no impact on the audit opinion. Option C is the best choice as it correctly states that the auditors should not refer to consistency in the report.

When There Has Been a Change in Accounting Principles, but the Effect