[If I can, u can too!]

NINJA Question –

Hi Jeff,

The question is missing Emphasis of matter section, which per AC-C 708.08, is the answer. Would be grateful if you can fix it. Thanks!

Question #: 930

In which of the following should an auditor’s report refer to the lack of consistency when there is a change in accounting principle that is significant?

A.

The auditor’s responsibility paragraph

B.

The opinion paragraph

C.

An other-matter paragraph following the opinion paragraph

D.

An other-matter paragraph before the opinion paragraph

The correct answer is C.

A lack of consistency caused by a material change in an applicable financial reporting framework between periods would be reported in an other-matter paragraph after the opinion paragraph. Under these circumstances, the auditor issues a modified unmodified opinion. The other answer choices are incorrect because the proper treatment of a lack of consistency is to add an other-matter paragraph after the opinion paragraph.

AC-C 708.08

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).