Which of the following circumstances normally does not affect the consistency phrase in the auditor's standard report?
A) A change in accounting estimate.
B) A change in accounting principle.
C) A change in the companies included in combined financial statements.
D) A correction of an error in principle.

Question

Quizplus · Accepted Answer

A change in accounting estimate does not affect the consistency phrase because it is considered a normal part of business operations and does not represent a change in accounting principles or policies.

Which of the Following Circumstances Normally Does Not Affect the Consistency