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Question
Changes in a client's accounting choices either affect "consistency" in the application of GAAP or they do not. For each item listed below, state whether the item affects consistency and identify the effect the change will have on the audit report.
1.Change in accounting estimate.
2.Correction of an error in principle.
3.Change in reporting entity.
4.Correction of an error that does not involve an accounting principle.
5.Change in accounting principle.
6.Change in classification and reclassification.
7.Change expected to have a material future effect.
Answer
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Related questions
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When evaluating internal control of an entity that processes revenue transactions on the Internet, an auditor would be most concerned about the
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D. Inability to establish test data.
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Tracing bills of lading to sales invoices provides evidence that
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When tracing a sample of shipping documents from throughout the year to the details of the sales invoices and to the sales journal and customers' accounts receivable subsidiary ledger, the auditor is testing the _____________ assertion.
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In confirming accounts receivable, an auditor decided to confirm customers' account balances rather than individual invoices. Which of the following most likely would be included with the client's confirmation letter?
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Once a CPA has determined that accounts receivable has increased because of slow collection in a "tight money" environment, the CPA would be likely to
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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