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    Auditing and Assurance Services Study Set 2
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    Exam 22: Audit of the Capital Acquisition and Repayment Cycle
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    If There Is an Adjustment to Retained Earnings Resulting from a Change
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If There Is an Adjustment to Retained Earnings Resulting from a Change

Question 56

Question 56

True/False

If there is an adjustment to retained earnings resulting from a change in accounting principle, the auditor should test the prior period effects of the change, but not test the entry to adjust prior period balances or retained earnings.

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