Question: A company has made a material change in its method of inventory measurement from an unacceptable one to one in accordance with the applicable financial

A company has made a material change in its method of inventory measurement from an unacceptable one to one in accordance with the applicable financial reporting framework. The auditor

s report on the financial statements of the year of the change should include

Group of answer choices

No reference to consistency.

A reference to the entity

s disclosure of the correction.

A note explaining the change.

Justification for the change and the effect of the change on reported net income.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please may I get the answers to the attached 5 questions. Module 4.A Chapter 11 Question 1: 11.19 MEDIUM Your audit firm, Styles & Associates, is the auditor of Brook Ltd (Brook) for the year ended...

Question 1 According to ASA 700 Forming an Opinion and Reporting on a Financial Report, an audit report must contain the following sections. Title Addressee Auditor's Opinion Basis for Opinion...

using the information provided please solve using the format 6C-2 In the overall audit strategy for the audit of Keystone Computers \& Networks Inc. in Appendix 6C, there is a section on significant...

The following questions relate to the auditor's responsibility for reporting on inconsistency of application of accounting principles. Select the best response. a. Raider uses the last-in, first-out...

Answer the following parts : Q) Which of the following is not a procedure that principal auditor should perform for ensuring completeness of information? a) review his working papers for the prior...

9. Provide and des for FS Audit. 10. Discuss the value of FS audit. 2 - 1 TRUE OR FALSE 1. Auditors serve numerous parties, but most importantly is the public, as exemplified by investors, creditors...

1. Which of the following presumptions is correct about the reliability of evidential matter? a. Information obtained indirectly from outside sources is the most reliable evidential matter. b. To be...

QUESTION 1 The audit objective that all balances include items owned by the client is related most closely to which one of the ASB balance assertions? Valuation. Rights and obligations. Completeness....

Tod Brooker, a registered company auditor, has completed the audit of the financial report of Mayfair Ltd for the year ended 30 June 2018. Mike also audited the financial report for Mayfair for the...

An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years. Below is a table for the present value of $1 at compound interest. Year 1 2 3 4 5 6% 10%...

Suppose you are given the following information for an economy without government spending, exports, or imports. C is desired consumption, I is desired investment, and Y is income. C and I are given...

Which of the following is an advantage of locating in a central business district? Question content area bottom Part 1 A . Moderate to low levels of competition B . Low rent C . Easy and abundant...

What are some food related health care issues that inner cities are more likely to see than more affluent areas? Why are certain areas most likely to experience inadequate healthy food options than...