In which of the following should an auditors' report refer to the lack of consistency when there is a change in accounting principle that is significant?
A)The Opinion on the Financial Statements section.
B)The Basis for Opinion section.
C)Both the Opinion on the Financial Statements section and the Basis for Opinion section.
D)An explanatory paragraph.

Question

Quizplus · Accepted Answer

An auditor's report should refer to the lack of consistency due to a significant change in accounting principle in an explanatory paragraph. This helps to clearly communicate the nature of the change and its impact on the financial statements' comparability across periods.

In Which of the Following Should an Auditors' Report Refer