Types of Audit Opinions

question 16

Essay

Types of Audit Opinions.
A CPA has completed an audit of the financial statements of a long-haul trucking company for the year ended December 31, 2014. Prior to 2014, the company depreciated its trucks over 10 years. However, during 2014, the company determined that a more realistic estimated life for its trucks was 8 years and computed the 2014 depreciation on the basis of the revised estimate. The CPA is satisfied that the 8 year estimate is reasonable, but the change will have a material effect on the comparability of the company's financial statements. The company adequately disclosed the change in estimated useful lives of its trucks and the effect of the change on 2014 income in a note to the financial statements.
REQUIRED:
Which type of audit report would you suggest be issued on the 2014 financial statements and why?

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Definitions:

Hard Brown Shell

Typically refers to the tough outer covering of certain fruits, nuts, or seeds.

Outer Husk

The tough external covering of certain fruits or seeds, which protects the softer parts inside.

Coconut Milk

A creamy liquid extracted from the grated flesh of a coconut, widely used in cooking and baking for its flavor and texture.

"There Is No Planet B"

A phrase emphasizing the importance of protecting Earth due to the lack of a viable alternative planet for human habitation.