When an auditor is trying to determine how changes can affect consistency and/or comparability, he or she 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

Changes that affect consistency require an explanatory paragraph if they are material. This is in accordance with Generally Accepted Auditing Standards (GAAS) which require the auditor to disclose any material departures from Generally Accepted Accounting Principles (GAAP) in the auditor's report. Changes that affect comparability may also require disclosure in the footnotes, but do not necessarily require an explanatory paragraph or a disclaimer of opinion.

When an Auditor Is Trying to Determine How Changes Can