alleryStart learning →Can an inappropriate accounting policy be cured by disclosing it?
AYes, if the auditor concurs
BNo, disclosure cannot rectify it
CYes, if the amount is small
DYes, with a detailed policy summary
Answer & Solution
Correct answer: B. No, disclosure cannot rectify it
Wrong policies stay wrong even when fully disclosed; neither policy disclosure nor explanatory material can rectify them.
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