For a change in accounting principles that management does not justify to the auditor,the auditor has a choice for the audit report between a qualified or an adverse opinion.

Question

Quizplus · Accepted Answer

If management does not provide a justification for a change in accounting principles, the auditor is required to either issue a qualified or an adverse opinion in the audit report. The choice of opinion depends on the materiality of the change and its impact on the financial statements.

For a Change in Accounting Principles That Management Does Not