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.

---

Definitions:

Obstetrics

A branch of medicine that deals with childbirth and the care of women giving birth.

OB/GYN

Obstetrics and Gynecology, a medical specialty focused on women's health, particularly pregnancy, childbirth, and disorders of the female reproductive system.

Radio Communication

The transmission of signals by modulation of electromagnetic waves with frequencies below those of visible light, used for transmitting messages, data, or images.

Medical Technician

A healthcare professional trained to perform diagnostic tests and minor procedures under the supervision of physicians and other practitioners.