ZuoTi.Pro
Question

The accounting and auditing literature discuss several different types of accounting changes. For each of the changes listed below (a through d), indicate whether the auditor should add a paragraph to...

The accounting and auditing literature discuss several different types of accounting changes. For each of the changes listed below (a through d), 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. Change from non-GAAP to GAAP

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
  1. Change from one GAAP to another GAAP

Yes, in this case the auditor need to add a disclosure because this may be case in which there has been a change in recognizing the revenue.

  1. Change in accounting estimate not affected by a change in accounting principle

Yes, this need to be disclosed because this affects the profit of a company. The best example of this can be change in the method of depreciation.

  1. Change in accounting estimate affected by a change in accounting principle

Yes, this need to be disclosed because the change will change the profits of company, the example of this will be recognizing revenue from the deferred revenue.

d. Change from non-GAAP to GAAP

No, this need to be disclosed because if GAAP is used then the books will be in accordance to the accepted principles.

0 0
Add a comment
Answer #2

A and D are both yes because they are changes in accounting principles and require and additional paragraph

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #3

A and D are both yes because they are changes in accounting principles and require and additional paragraph

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #4

A and D are both yes because they are changes in accounting principles and require and additional paragraph

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #5

A and D are both yes because they are changes in accounting principles and require and additional paragraph

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #6

A and D are both yes because they are changes in accounting principles and require and additional paragraph. 

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #7

A and D are both yes because they are changes in accounting principles and require and additional paragraph. 

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #8

A and D are both yes because they are changes in accounting principles and require and additional paragraph. 

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #9

A and D are both yes because they are changes in accounting principles and require and additional paragraph. 

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #10

A and D are both yes because they are changes in accounting principles and require and additional paragraph. 

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Answer #11

A and D are both yes because they are changes in accounting principles and require and additional paragraph. 

source: Auditing: A Risk-Based Approach 11th Ed.
answered by: Justine
0 0
Add a comment
Know the answer?
Add Answer to:
The accounting and auditing literature discuss several different types of accounting changes. For each of the changes listed below (a through d), indicate whether the auditor should add a paragraph to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A manager is explaining to a staff auditor how various situations might affect the audit opinion....

    A manager is explaining to a staff auditor how various situations might affect the audit opinion. For each of the following scenarios, identify the appropriate reporting option by matching the scenario with the opinion type from the list provided. Assume that any financial statement effect is material, unless otherwise noted and that US auditing standards are followed. -A.B.C.D. The scope of the auditor’s examination is affected by conditions that preclude the application of a necessary auditing procedure it IS very...

  •       For each of the following independent situations, assume that any amounts would be material.      ...

          For each of the following independent situations, assume that any amounts would be material.       (I) Indicate the TYPE of appropriate audit report; A. unqualified, B. qualified or adverse, C. qualified             or disclaimer, D. Disclaimer, E. Qualified only, or F. Other. INDICATE the situation involved, i.e.           “Accounting situation”, and DISCUSS the situation.      (II) State whether an explanatory paragraph [i.e. PCAOB audit] would be included, and if so,           what would be included in the explanatory paragraph....

  • asap clearly pls Chapter 18 For each of the following independent situations, assume that any amounts...

    asap clearly pls Chapter 18 For each of the following independent situations, assume that any amounts would be material (1) Indicate the TYPE of appropriate audit report; A. unqualified, B. qualified or adverse, C. qualified or disclaimer, D. Disclaimer, E. Qualified only, or F. Other. INDICATE the situation involved, Le. "Accounting situation", and DISCUSS the situation. (1) State whether an explanatory paragraph (i.e. PCAOB audit] would be included, and if so, what would be included in the explanatory paragraph. (H)...

  • B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements...

    B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements for becoming a CPA include all but which of the following A) Uniform CPA examination requirement B) Educational requirements C) Character requirements D) Experience requirement 2) The International Standards on Auditing (ISAs) A) are issued by the AICPA B) override a country's regulations governing the audit of a company C) has many of the same standards as the Auditing Standards Board (ASB) D) must...

  • 17-38 For each of the following brief scenarios, assume that you are reporting on a client’s...

    17-38 For each of the following brief scenarios, assume that you are reporting on a client’s current year financial statements. Reply as to the type or types of opinion possible in the circumstance.                 S              Unmodified – Standard                 U             Unmodified with emphasis-of-matter or other-matter paragraph                 Q             Qualified                 D             Disclaimer                 A             Adverse Since more than one report may be possible in several of the circumstances, a second “opinion” column is added for each circumstance. In certain cases,...

  • Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee

    1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...

  • First, read the article on "The Delphi Method for Graduate Research." ------ Article is posted below...

    First, read the article on "The Delphi Method for Graduate Research." ------ Article is posted below Include each of the following in your answer (if applicable – explain in a paragraph) Research problem: what do you want to solve using Delphi? Sample: who will participate and why? (answer in 5 -10 sentences) Round one questionnaire: include 5 hypothetical questions you would like to ask Discuss: what are possible outcomes of the findings from your study? Hint: this is the conclusion....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT