Your Client Is Not Using Either ASPE or IFRS

question 34

Multiple Choice

Your client is not using either ASPE or IFRS.Instead,it is using current value accounting with no use of historical cost,because your client is in a country with about 50% inflation per year.Local legislation requires that all resident organizations use current value accounting.How do these events affect the independent auditor's report?

• A)The auditor would issue an unmodified auditor's report.
• B)The auditor would use an Emphasis of Matter paragraph to explain that the financial statements are prepared in accordance with local legislation.
• C)The auditor would use an Other Matter paragraph to explain that the financial statements are prepared in accordance with local legislation.
• D)The auditor would state in the opinion paragraph that the financial statements were prepared in accordance with the local legislation.

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Definitions:

Abdominal Surgery

Surgical operations that involve opening the abdominal cavity to diagnose, treat, or prevent disease affecting any of the organs within the abdomen.

Clinical Findings

are the outcomes of clinical examinations and tests that provide data about a patient's health condition.

Surgical Incision

The act of making a cut in the body with a sharp instrument, especially during surgery to access or remove an internal part of the body.

Antiembolism Compression Stockings

Specially designed stockings that apply pressure to legs to prevent blood clots and improve blood flow, commonly used post-surgery.