Answered: Which of the following would be…

Which of the following would be considered a change that affects consistency? * Change in accounting estimate. O Change in reporting entity. Change in classification and reclassification.

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter2: Audits Of High-risk Accounts

Section2.2: Golden Bear Golf, Inc.

Problem 5Q

See similar textbooks

Related questions

Q: Changes in accounting policies are always accounted for as prospective in application. TRUE or…

A: Accounting policies means rules, guidelines and procedures that are used for the preparation of…

Q: Discuss briefly the three approaches that have been suggested for reporting changes in accounting…

A: Accounting changes are the alterations made to the accounting methods, accounting estimates,…

Q: The change in accounting estimate should be treated currently and prospectively. True or false

A: A change in accounting estimate is a current change that affects the carrying value of Assets and…

Q: entify the three types of modification to an auditor’sopinion on financial statements according to…

A: Auditors report Auditors report is the disclaimer issued by internal auditor or an external auditor…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to accounting changes and…

A: IFRS stands for International Financial Reporting Standards IFRS consists of various accounting…

Q: Explain mandated changes in accounting principle.

A: Accounting principles are the uniform practices that are followed in the preparation of the…

Q: In order to report on changes in accounting rules, the FASB needs a certain technique.

A: Changes in accounting rules, the FASB needs a certain technique will b e explained:

Q: The client has restated the prior-year statements because of a changefrom LIFO to FIFO. How should…

A: In the given case, the departures from GAAP identified by the auditors are immaterial, in this case…

Q: Changes in accounting policy are Permitted if the change will result in a more reliable and more…

A: Change in accounting policy refers to change in the method of accounting principles or rules…

Q: What are some of the most common types of accounting distortions that can arise?

A: Accounting refers to the process of examining and documenting all the financial and other…

Q: Discuss and illustrate how a correction of an error in previously issued financial statements should…

Q: Under IFRS, changes in accounting policies are a. permitted if the change will result in a more…

Q: . Identify the three types of modification to an auditor’s opinion on financial statements according…

A: AUDITORS REPORT AUDITORS REPORT IS THE DISCLAIMER ISSUED BY INTERNAL AUDITOR OR AN EXTERNAL AUDITOR…

Q: What is the indirect effect of a change in accounting principle?Briefly describe the reporting of…

A: Change in an accounting principle: This change occurs when a company decides to change from an…

Q: Using IFRS, a change in accounting policy for which a standard does not include specific…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: A change in accounting principle requires a modification of the wording standard unqualified audit…

A: An unqualified opinion is issued by an independent auditor when he/she determines that the financial…

Q: What are interim reports? Why is a complete set of financial statements often not provided with…

A: Interim report: When the financial results are published for the year shorter than the fiscal year,…

Q: What situation is an example of a change in accounting estimates? Can you briefly discuss how to…

A: A change in accounting estimate is a revaluation of the projected future benefits and…

Q: Most changes in accounting principles are recorded and reported retrospectively. In a few…

Q: What are the implications of a revised accounting estimate

A: The implications of a revised accounting estimate will be explained :

Q: What are the implications of a change in accounting standards? For example, what kinds of changes to…

A: Financial Accounting Standard Board (FASB) and International Financial Reporting Standards (IFRS)…

Q: Compare and contrast the sorts of accounting changes and the methods used to account for them

A: The sorts of accounting changes and the methods will be explained:

Q: How is a change in accounting estimate applied?

A: A change in accounting estimate is an adjustment of the carrying amount of an asset or liability, or…

Q: According to the convention of consistency Select one: a. Accounting policies and practices once…

A: In accounting, the convention of consistency means that accounting methods once adopted must be…

Q: Is there an indirect consequence to a change in accounting policy? Introduce the methodology for…

A: This question tells about consequence to a change in accounting policy

Q: For which of the following events would an auditor issue a report that does not make any reference…

A: An auditor is appointed to check the accuracy of the financial statement prepared by the company.

Q: Choose the correct.Which of the following statements concerning U.S. GAAP is true?a. Does not…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Differentiate among the three types of accounting changes and distinguish among the retrospective,…

A: The three types of accounting changes are: Change in accounting principle Change in accounting…

Q: Describe the accounting for changes in estimates and changes in the reporting entity.

A: Accounting changes: When a company requires to sacrifice the consistent accounting methods and…

Q: May you tell me where I can get reliable IFRS relevant to accounting changes

A: This question explains about reliable IFRS relevant to accounting changes

Q: How does the concept of consistency aid in the analysis of financial statements? Why type of…

A: General accepted accounting principles means those set of standards which is followed while…

Q: What is the desired benefit from revising an accounting standard?

A: Financial Accounting Standards Board: It is commonly known as FASB. It is a private, non-profit…

Q: What does the FASB do in order to assess possible benefits and costs of a proposed revision of an…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: esult of the accounting change?

Q: Understand the reporting of accounting changes and errors.

A: Accounting Changes and Errors: Meaning: Error Correction and Accounting changes are guidance that…

Q: Role of Judgment in Application of Accounting Standard. Should it reduced or expand the role?

A: Irrespective of the approach that is used by the standard setters to establish accounting standards,…

Q: Which of the following is false? a. GAAP and IFRS have the same absolute standard regarding the…

A: International Financial Reporting Standard (IFRS): An international standard for identifying,…

Q: Which of the following is not one of the approaches for reporting accounting changes? The change…

A: accounting change is a change that takes place in the accounting principles, accounting estimate or…

Q: Where can authoritative IFRS related to accounting changes be found?

A: Accounting changes include the change in methods or ways of accounting by the company, which will…

Q: Distinguish between termporary differences and permanent differences in Accounting? Provide an…

A: Generally, the reports and financial statements are to be prepared as per the applicable accounting…

Q: ow they are reported. What are the disclosure requirements for correction of errors. Please see…

A: Accounting Errors : A non-fraudulent inconsistency in financial documents is referred to as an…

Q: Discuss how a change in accounting policy is handled when it is impractical to ascertain earlier…

A: This question explains about impractical to ascertain earlier values due to unforeseen…

Q: describe the fi nancial reporting treatment and analysis of non-recurring items (including…

A: Below are the analysis and reporting treatment-

Question

Which of the following would be
considered a change that affects
consistency? *
Change in accounting estimate.
O Change in reporting entity.
Change in classification and
reclassification.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Describe a change in a reporting entity. How does a company account for such changes?
The accounting and auditing literature discusses several different types of accounting changes. For each of the changes listed below (a. through c.), 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. non-public 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. Correction of an error c. Change from non-GAAP to GAAP (a special case of correction of an error)
Which of the following is not classified as an accounting change by IFRS?(a) Change in accounting policy.(b) Change in accounting estimate.(c) Errors in fi nancial statements.(d) None of the above.
What is the indirect effect of a change in accounting policy? Briefly describe the approach to reporting the indirect effects of a change in accounting policy under IFRS.
Differentiate among the three types of accounting changes and distinguish among the retrospective, modified retrospective, and prospective approaches to accounting for and reporting accounting changes.
What is the indirect effect of a change in accounting principle?Briefly describe the reporting of the indirect effectsof a change in accounting principle.
Which type of accounting change should always be accounted for in current and future periods? Change in accounting policy Change in reporting entity Change in accounting estimate Correction of an error
Where can authoritative IFRS related to accounting changes be found?
Requirements: a. What is the cumulative effect of this accounting change? b. What is the entry to record the effect of this accounting change?
How is a change from a non-GAAP accounting method to a GAAP method recorded?
How are changes in accounting policies accounted for and disclosed?