The objective of the second PCAOB Standard of Reporting is to provide assurance that
A) There are no variations in the format and presentation of financial statements.
B) Substantially different transactions and events are not accounted for on an identical basis.
C) The auditor is consulted before material changes are made in the application of accounting principles.
D) The comparability of financial statements between periods is not materially affected by changes in accounting principles that are not disclosed.

Question

Quizplus · Accepted Answer

The second PCAOB Standard of Reporting aims to ensure that changes in accounting principles that are not disclosed do not materially affect the comparability of financial statements between periods. This standard requires auditors to assess the consistency of the application of accounting principles, and to report any changes in accounting principles that materially affect the comparability of financial statements between periods.

The Objective of the Second PCAOB Standard of Reporting Is