Question

While reviewing the books at his firm, Chad Cooper noticed discrepancies between howthe firm recorded revenues last year and how it elected to record revenues during the recent quarter of the current year. As a recent business graduate, Chad felt confident that the changes needed clarification. To get another opinion, Chad suggested to the company's controller that the firm solicit _______________. A. the assistance of the Government Accounting Standards Board.B. the services of a certified internal auditor.C. the services of a senior executive at the IRS.D.the services of an independent auditor.

Answer 1

Answer:

D.the services of an independent auditor.

Explanation:

In accounting based on the consistency principle, the method of reporting financial records should be consistent from one accounting period to the other. This enables easy comparison between previous and present records.

So in order to determine there need for an auditor to provide an opinion on the accuracy of the companie's financial statements.

The change in method of reporting could have been done to hide a discrepancy.