TRUE OR FALSE

5)Prior years' financial statements are restated when the prospective approach is used.

(True / False)

6)Elective changes in accounting principle require disclosures explaining the impact of and justifying the

change (True / False)

7)Companies are required to disclose all related party transactions including potential future transactions

discussed at board of director meetings. (True / False)

8)The most desirable audit opinion a company can receive is a qualified opinion (True / False).