consistency with financial statements

Question 1

when there is a change in acc principal or prior period adjustment a ______is needed

Answer 1

emphasis of matter paragraph is needed in the auditor’s report

Question 2

the auditor should evaluate change in acc principles for four matters

Answer 2

whether the adopted principal is in accordance with the applicable financial reporting framework

whether the method of accounting for the effect of the change is in accordance with the applicable financial reporting framework

whether the disclosure about the change are adequate

whether the identity has justified that the alternative adopted is preferable.

Question 3

when the four criteria is met and there is a material affect on the financials the auditor should include a emphasis of matter paragraph and say that the f/s are not

Answer 3

modified regarding the matter