Page 551 - Auditing Standards

As of December 15, 2017
34 See footnote 6.

35 When financial statements (or specified elements, accounts, or items thereof) have been prepared in
conformity with generally accepted accounting principles in prior years, and the entity changes its method of
presentation in the current year by preparing its financial statements in conformity with an other comprehensive
basis of accounting, the auditor need not follow the reporting guidance in this subparagraph. However, the
auditor may wish to add an explanatory paragraph to the report to highlight (1) a difference in the basis of
presentation from that used in prior years or (2) that another report has been issued on the entity's financial
statements prepared in conformity with another basis of presentation (for example, when cash basis financial

statements are issued in addition to GAAP financial statements).

36 A change in the tax law is not considered to be a change in accounting principle for which the auditor
would need to add an explanatory paragraph, although disclosure may be necessary.

[37-38] [Footnotes deleted.]

39 See AS 2415, Consideration of an Entity's Ability to Continue as a Going Concern, for a report example
when the auditor has substantial doubt about the entity's ability to continue as a going concern.

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