Arnold Co. changed its method of accounting for inventories from FIFO to the weighted average method. Billups,

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Arnold Co. changed its method of accounting for inventories from FIFO to the weighted average method. Billups, CPA, concurs with the change and has noted that it has been properly accounted for and is adequately disclosed in the financial statements. Billups is curious as to whether or not the report on the audited financial statements should be modified because of the change in accounting principle. Which paragraph of the professional standards addresses this issue and will be helpful in understanding whether or not the auditor's report should be modified under the circumstances?

Posted Date: Nov 12, 2021 11:55 PM

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Arnold Co. changed its method of accounting for inventories from FIFO to the weighted average method. Billups,

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Expert Answer:

ANS WER The standard that addresses this issue is AU C section 9 25 Mod i... View the full answer

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