The client is expected to furnish support for any prior-period adjustments to retained earnings.

Question

Quizplus · Accepted Answer

Prior-period adjustments to retained earnings typically involve corrections of errors from previous financial statements. It is the client's responsibility to provide support and justification for these adjustments, as they have the most direct access to and understanding of their own financial records and the nature of the errors being corrected.

The Client Is Expected to Furnish Support for Any Prior-Period