A change that the auditor agrees with from one generally accepted accounting principle to another generally accepted accounting principle that has a pervasive effect on net income usually results in an audit report with unmodified opinion and an emphasis-of-matter paragraph.

Question

Quizplus · Accepted Answer

This is true as the change in accounting principle is still in compliance with generally accepted accounting principles, and the auditor is able to provide an unmodified opinion. However, the auditor would need to include an emphasis-of-matter paragraph to draw attention to the change and its impact on the financial statements.

A Change That the Auditor Agrees with from One Generally