Digit Co Uses the FIFO Method of Costing for Its International

question 836

Multiple Choice

Digit Co. uses the FIFO method of costing for its international subsidiary's inventory and LIFO for its domestic inventory. Under these circumstances, the auditor's report on Digit's financial statements should express an:

• A) Unqualified opinion.
• B) Opinion qualified because of a lack of consistency.
• C) Opinion qualified because of a departure from GAAP.
• D) Adverse opinion.

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Definitions:

Communication Style

The characteristic way in which an individual expresses themselves verbally and non-verbally when interacting with others.

Building Rapport

The process of establishing a connection or mutual understanding between two or more people, often used in the context of communication or negotiation.

Sympathy

The feeling of pity or sorrow for someone else's misfortune.

Body Language

The non-verbal communication through body movements, expressions, and postures, conveying feelings or intentions.