When an auditor is trying to determine how changes can affect consistency and and/or comparability,he should keep in mind that
A)changes that affect comparability but not consistency require an explanatory paragraph.
B)items that materially affect the comparability of financial statements requires a disclaimer of opinion.
C)changes that affect consistency require an explanatory paragraph if they are material.
D)changes that involve either comparability or consistency only need to be mentioned in the footnotes.

Question

Quizplus · Accepted Answer

According to the Generally Accepted Auditing Standards (GAAS), changes that affect consistency require an explanatory paragraph in the auditor's report if they are material. Changes that affect comparability but not consistency also require disclosure in the footnotes, but not necessarily an explanatory paragraph. A disclaimer of opinion is only required when the financial statements are so materially misstated that they cannot be relied upon. Simply having items that affect comparability does not require a disclaimer of opinion. Therefore, the best choice is C.

When an Auditor Is Trying to Determine How Changes Can