Management Has Decided That the Life of a Piece of Heavy

question 42

Multiple Choice

Management has decided that the life of a piece of heavy equipment should be decreased from 15 years to 10 years thus increasing the annual amortization.The auditor agrees that this amortization period is more reflective of the nature of the asset.The type of audit report that should be issued is:

• A)Unqualified.
• B)Qualified.
• C)Adverse.
• D)Disclaimer.