Your Audit Client Has Not Written Inventory Down to Net

question 17

Multiple Choice

Your audit client has not written inventory down to net realisable value in accordance with approved accounting standards. The write-down would reduce current assets by 15 per cent and net profit before income tax by
11 per cent. What type of auditor's report should you issue?

• A) An unmodified opinion with an Emphasis of Matter paragraph.
• B) A disclaimer of opinion.
• C) An adverse opinion.
• D) A qualified opinion.

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Definitions:

Novel

New or original, especially in relation to stories, inventions, or ideas not previously seen or experienced.

Brain Imagery

The use of various medical imaging techniques to visualize the structure and function of the brain for diagnosis and treatment planning.

Increased Intelligence

The improvement or enhancement of cognitive functions, including memory, problem-solving, and creativity, over time.

Culturally Biased

Having or showing an unfair tendency to favor or disfavor something based on one's own culture, beliefs, or preferences.