Your Client Is Not Using Either ASPE or IFRS

question 53

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 a standard unqualified 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:

External Locus

The belief that outcomes in one's life are primarily determined by outside forces or circumstances beyond one's control.

Locus of Control

Refers to an individual's belief about the extent to which their actions influence the outcomes in their lives.

Type B Personality

A temperament distinguished by its serene, forbearing, and unhurried demeanor.

Mindfulness Meditation

A practice of focusing one's mind on the present moment, often used as a technique to manage stress and enhance well-being.