A change in accounting estimate is an example of an accounting change that affects comparability and requires an explanatory/emphasis-of-matter paragraph in the audit report.

Question

Quizplus · Accepted Answer

A change in accounting estimate does not require an explanatory/emphasis-of-matter paragraph in the audit report, as it is considered a normal part of business operations and does not affect the comparability of financial statements in the same way as a change in accounting principle would.

A Change in Accounting Estimate Is an Example of an Accounting