Changes that affect comparability but that do not involve a change in accounting principle or the correction of a misstatement are normally disclosed in the footnotes but do not require an explanatory paragraph in the audit report.

Question

Quizplus · Accepted Answer

This statement is true. Changes that affect comparability but do not involve a change in accounting principle or the correction of a misstatement are referred to as "consistent changes in accounting estimate" and are typically disclosed in the footnotes of financial statements but do not require an explanatory paragraph in the audit report.

Changes That Affect Comparability but That Do Not Involve a Change