When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for a public company and the auditor concurs with the change,the auditor should $\begin{array} { l l l }
\text { Concur Explicitly } & \text { Issue an "Except for" } & \text { Refer to the Change in } \
\underline{\text { In the Change }} &\underline{ \text { Qualified Opinion }} & \underline{\text { an Explanatory Paragraph} } \\end{array}$
A.$\begin{array} { l l l } \text { No } &\quad\quad\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad\quad\quad\quad \text { Yes } \\end{array}$
B.$\begin{array} { l l l } \text { Yes } & \quad\quad\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad\quad\quad\quad \text { Yes } \\end{array}$
C.$\begin{array} { l l l } \text { Yes } &\quad\quad\quad\quad\quad\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No } \\end{array}$
D.$\begin{array} { l l l } \text { No } &\quad\quad\quad\quad\quad\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No }\end{array}$

A)A.
B)B.
C)C.
D)D.

Question

When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for a public company and the auditor concurs with the change,the auditor should $\begin{array} { l l l } 
\text { Concur Explicitly } & \text { Issue an "Except for" } & \text { Refer to the Change in } \
\underline{\text { In the Change }} &\underline{ \text { Qualified Opinion }} & \underline{\text { an Explanatory Paragraph} } \\end{array}$
A.$\begin{array} { l l l }  \text { No } &\quad\quad\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad\quad\quad\quad \text { Yes } \\end{array}$
B.$\begin{array} { l l l } \text {  Yes } & \quad\quad\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad\quad\quad\quad  \text { Yes } \\end{array}$
C.$\begin{array} { l l l } \text {  Yes } &\quad\quad\quad\quad\quad\quad\quad\quad  \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No } \\end{array}$
D.$\begin{array} { l l l } \text {  No } &\quad\quad\quad\quad\quad\quad\quad\quad  \text { Yes } &\quad\quad\quad\quad\quad\quad\quad  \text { No }\end{array}$
 
A)A. 
B)B.
C)C.
D)D.

Quizplus · Accepted Answer

The auditor should include an emphasis-of-matter paragraph in the auditor's report stating that the change in accounting principle has been made and describing its nature, the method of accounting for the effect of the change, and the cumulative effect of the change on the earliest year presented. This will inform the users that the financial statements for the current period are not comparable to those of the prior period.

When There Has Been a Change in Accounting Principle That