A Client Has Changed Their Method of Valuing Inventory from FIFO

question 104

Multiple Choice

A client has changed their method of valuing inventory from FIFO to LIFO and the change has a material effect on the financial statements.If the auditor does not concur with the appropriateness of the change, the auditor should issue a(n) :

• A)disclaimer.
• B)adverse opinion.
• C)unqualified opinion.
• D)qualified opinion.

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Definitions:

Felsic Composition

Rocks characterized by a high content of light-colored minerals such as quartz, feldspar, and mica, generally associated with continental crust.

Viscous

A physical property indicating a fluid's resistance to flow; highly viscous substances move slowly.

Gas Bubbles

Cavities filled with gas trapped within a solid material, often found in cooling lava.

Magma Rise

The upward movement of molten rock or magma from the Earth's mantle towards the crust, often leading to volcanic activity.