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Below are lists of accounting changes affecting consistency and comparability for a nonissuer. All items are material. Which list does NOT contain a change requiring recognition in the audit report?
A. Correction of an error in an accounting principle; change in accounting estimate; reclassification.
B. A change in accounting estimate; a substantially different transaction; an accounting change having no material effect on the financial statements in the current year but having a substantial effect in subsequent years.
C. Substantially different transactions; correction of a misstatement in preciously issued statements; a change in reporting entity not resulting from a transaction or event.
D. Correction of a misstatement in previously issued statement; change in accounting estimate; a change in reporting entity not resulting from a transaction or event.
The objective of the auditor's evaluation of the consistency of financial statements is to determine whether
A. Changes in classification have occurred.
B. Substantially different transactions and event are not accounted for on an identical basis.
C. The auditor should be consulted before material changes are made in the application of accounting principles.
D. The comparability of financial statement between periods has been materially affected by a change in accounting principle.
Seripak Corporation made a material change in accounting principle with which the auditor concurs. The auditor should express
A. An unmodified opinion with an emphases-of-matter paragraph.
B. A qualified opinion with an emphasis-of-matter paragraph.
C. An adverse opinon with an emphasis-of-matter paragraph.
D. An "except for" opinion without an emphasis-of-matter paragraph.
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