changes in an entity's accounting choices either affect consistency in the application of gaap or they do not. for each item listed below, state whether the item affects consistency and identify the effect the change will have on the audit report.change in accounting estimate.a change from the inappropriate use or application of accounting principle in prior years to an acceptable accounting principle in the current year.a change from an incorrect to a correct classification of transactions or balances on the financial statements.reclassification from an acceptable classification to another.change in accounting principle.an adjustment to account balances to correct a material error in previously issued financial statements.