A change in accounting estimate is an example of an accounting change that affects comparability and requires an explanatory paragraph in the audit report.

Question

Quizplus · Accepted Answer

A change in accounting estimate is a normal part of the financial reporting process and does not typically require an explanatory paragraph in the audit report, as it does not affect the comparability of financial statements in a way that necessitates such disclosure.

A Change in Accounting Estimate Is an Example of an Accounting