Which of the following is not a change that affects consistency and, therefore, does not require an emphasis of matter paragraph?
A) Change in an estimate, such as a decrease in the life of an asset for depreciation purposes.
B) Correction of errors by changing from non- IFRS to IFRS.
C) Change in accounting principle, such as a change from LIFO to FIFO.
D) Change in reporting entity, such as the inclusion of an additional company in combined financial statements.

Question

Quizplus · Accepted Answer

Changes in estimates, like adjusting the useful life of an asset, are part of the normal accounting process and do not typically require an emphasis of matter paragraph in the auditor's report. Changes in accounting principles, corrections of errors, and changes in the reporting entity are more significant and might require such a paragraph.

Which of the Following Is Not a Change That Affects