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The auditor鈥檚 report is a document comprising the viewpoint of the auditor on in case a firm鈥檚 accounting statements are in accordance with the Generally Accepted Accounting Principles (GAAP) and are exempted from material misrepresentation.

If the firm altered its process of valuing inventory, the consistency as well as the comparability, of the accounting statements have been affected by a variation in the process of applying the principles of accounting. The variation would need statement in the report of auditor in a descriptive paragraph.

If the firm ended one of its two subsidiaries that was involved in its consolidated statements for previous years, no statement in relation to the requirements of consistency is required to be made in the CPA鈥檚 audit report. The comparability of the accounting statements has been affected by the business events, but there has been no alteration made in the principle or the process used. The transaction would possibly need informative exposure in the accounting statements.

If the firm decreases the estimated residual life of plant property due to obsolescence, the comparability of the accounting statements has been afflicted. The variation is not a subject of consistency; it is an alteration in the accounting evaluate needed by changed conditions and includes no variation in principles of accounting used. The variation would reasonably be stated by an accounting statement note. If judged on in the CPA鈥檚 report, it would be a result of disclosure as opposed to consistency.