When there is a lack of consistent application in accounting principles,
A) the nature and impact of the change should be adequately disclosed.
B) the auditor should discuss the nature of the change and point the reader to the footnote that discusses the change.
C) the materiality of the change is evaluated based on the current year effect of the change.
D) all of the above.

Question

Quizplus · Accepted Answer

When there is a lack of consistent application in accounting principles, all of the above options should be considered. The nature and impact of the change should be disclosed, the auditor should discuss the change and direct the reader to the appropriate footnote, and the materiality of the change should be evaluated based on its effect in the current year.

When There Is a Lack of Consistent Application in Accounting