Why is an entity permitted by financial reporting standards to change an accounting policy? O The change is authorized by the management of the entity. O The change would results in the financial statements providing more.reliable and relevant information about financial position, financial performance and cash flows. O The change is made by a CPA. O The change would allow the entity to present a better financial results.
Why is an entity permitted by financial reporting standards to change an accounting policy? O The change is authorized by the management of the entity. O The change would results in the financial statements providing more.reliable and relevant information about financial position, financial performance and cash flows. O The change is made by a CPA. O The change would allow the entity to present a better financial results.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter17: Other Services Provided By Audit Firms
Section: Chapter Questions
Problem 24MCQ
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![Why is an entity permitted by financial reporting standards to change an accounting
policy?
O The change is authorized by the management of the entity.
O The change would results in the financial statements providing more.reliable and relevant
information about financial position, financial performance and cash flows.
O The change is made by a CPA.
O The change would allow the entity to present a better financial results.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F448b8722-e769-4616-9917-2212397b0d7a%2Facf2c149-62cd-4713-ad0f-8b54316a8919%2Fr0ws6d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Why is an entity permitted by financial reporting standards to change an accounting
policy?
O The change is authorized by the management of the entity.
O The change would results in the financial statements providing more.reliable and relevant
information about financial position, financial performance and cash flows.
O The change is made by a CPA.
O The change would allow the entity to present a better financial results.
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