have on the audit report. 1. Change in accounting estimate. 2 A change from the inappropriate ust or application of accounting principle in prior years to an acceptable accounting principle in the current year. 3. A change from an incoriect to a correct classification of transactions or balances on the financial statements. 4. Reciassification from an acceptable classification to anothet. 5. Change in accounting principle. 6. An adjustment to account balances to correct a material error in previously issued financial statements