Which of these situations would require auditors to append an explanatory paragraph about consistency to an otherwise unqualified opinion?
A) Entity changed its estimated allowance for uncollectible accounts receivable.
B) Entity corrected a prior mistake in accounting for interest capitalization.
C) Entity sold one of its subsidiaries and consolidated six subsidiaries this year compared to seven last year.
D) Entity changed its inventory costing method from FIFO to LIFO.

Question

Quizplus · Accepted Answer

A change in inventory costing method from FIFO to LIFO would require auditors to append an explanatory paragraph about consistency to an otherwise unqualified opinion.

Which of These Situations Would Require Auditors to Append an Explanatory