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Discuss whether the changes described in each of the cases below require recognition in the CPA's audit report as to consistency. (Assume that the amounts are material.)
(a) The company changed its inventory method to FIFO from weighted-average, which had been used in prior years.
(b) The company disposed of one of the two subsidiaries that had been included in its consolidated statements for prior years.
(c) The estimated remaining useful life of plant property was reduced because of obsolescence.
(d) The company is using an inventory valuation method that is different from those used by all other companies in its industry.
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The ability to develop and use good management accounting is actually an important ability for many individuals, including finance professionals, operational and marketing managers, top-level executives, and information technologists.
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