When an auditor is trying to determine how changes can affect consistency and/or compatibility, 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 involved comparability or consistency only need to be mentioned in the footnotes.

Question

Quizplus · Accepted Answer

According to auditing standards, when changes affect consistency, they require an explanatory paragraph in the auditor's report if they are material. Changes that affect comparability but not consistency may also require disclosure in the footnotes, but they do not require an explanatory paragraph or a disclaimer of opinion. Therefore, option C is the best choice.

When an Auditor Is Trying to Determine How Changes Can