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voluntary accounting change

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A fund manager states: "I refuse to buy any company that makes a voluntary accounting change, since it's certainly a case of management trying to hide bad news." Can you think of any alternative interpretation?

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Another possible interpretation is that management take such steps or action to ...

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A fund manager states: "I refuse to buy any company that makes a voluntary accounting change, since it's certainly a case of management trying to hide bad news." Can you think of any alternative interpretation?

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See Also This Related BrainMass Solution

Changes in Accounting Principles

If management fails to provide adequate justification for a change from one generally accepted accounting principle to another, the auditor should
A)Add an explanatory paragraph and express a qualified or an adverse opinion on the company's financial statements for lack of conformity with generally accepted accounting principles.
B) Disclaim an opinion on the company's financial statements because of uncertainty.
C)Disclose the matter in a separate explanatory paragraph(s) but not modify the opinion paragraph on the company's financial statements.
D)Neither modify the opinion on the company's financial statements nor disclose the matter because both principles are generally accepted.

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