The accounting and auditing literature discusses several different types of
The accounting and auditing literature discusses several different types of accounting changes. For each of the changes listed below (a. through e.), indicate whether the auditor should add a paragraph to the audit report, assuming that the change had a material effect on the financial statements and was properly justified, accounted for, and disclosed.
Assume that the organization is a U.S. nonpublic company.
a. Change from one GAAP to another GAAP
b. Change in accounting estimate not affected by a change in accounting principle
c. Change in accounting estimate affected by a change in accounting principle
d. Correction of an error
e. Change from non-GAAP to GAAP (a special case of correction of an error)

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