Audit Report Modifications for Changes in Accounting Principles: Are Auditors Too Enthusiastic? by Academy of Accounting and Financial Studies Journal

Audit Report Modifications for Changes in Accounting Principles: Are Auditors Too Enthusiastic?

By Academy of Accounting and Financial Studies Journal

  • Publication Date: 1997-07-01
  • Genre: Business & Personal Finance

Book Synopsis

INTRODUCTION A change in accounting principle occurs when a company changes from one generally accepted accounting principle (GAAP) to another generally accepted accounting principle. Such changes impact the consistency of financial reporting between years; therefore, Accounting Principles Board (APB) Opinion No. 20 requires financial statement disclosure of the nature of the change, justification for the change, and the cumulative effect of the change on income.

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