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MMLU / When there has been a change in accounting principles, but the effect of the…

Problem

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question

When there has been a change in accounting principles, but the effect of the change on the comparability of the financial statements is not material, the auditor should

choices

  1. Not refer to the change in the auditor’s report.
  2. Refer to the note in the financial statements that discusses the change.
  3. Refer to the change in an emphasis-of-matter paragraph.
  4. Explicitly state whether the change conforms with GAAP.

subject

professional_accounting

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Official source

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