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if an audit client has not consistently observed accounting principles in the current period in relation...

if an audit client has not consistently observed accounting principles in the current period in relation to the preceding period, the auditor should normally issue an unqualified report with an explanatory paragraph which explains the nature of the change.

a.true
b. false

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Answer #1

Yes.

As per Auditing standards or accounting principles, Management has to apply its accounting principles consistently. Hence Consistency principle is to be followed while preparation and presentation of Financial statements of all the financial years.

Since client has not applied accounting principles consistently in current year like that of preceeding period, auditor has to issue a Unqualified report with proper explanatory paragraphs explaining the nature of changes.

Answer is True.

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