A correction of a material misstatement in previously issued financial statements is an example of an accounting change that affects comparability and requires an explanatory paragraph in the audit report.

Question

Quizplus · Accepted Answer

This statement is true. A material misstatement correction is considered to be an accounting change that affects comparability and must be disclosed in the audit report with an explanatory paragraph.

A Correction of a Material Misstatement in Previously Issued Financial