Your Client Has Followed Approved Accounting Standards but a Note

question 29

Multiple Choice

Your client has followed approved accounting standards but a note to the financial report indicates the early application of an accounting standard that has a pervasive effect on the financial report in advance of its effective date.The note details the reasons for this view.You, as the auditor, concur that this additional note disclosure is necessary to give a true and fair value.What type of opinion should you issue?

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

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Definitions:

Nucleophilicity

A measure of the ability of a chemical species to donate an electron pair to an electrophile, thus forming a chemical bond.

Hydroxylic Solvents

Solvents that contain -OH groups and can participate in hydrogen bonding, affecting solubility and reaction outcomes.

Nucleophilicity

A measure of the ability of a chemical species to donate an electron pair and form a covalent bond.

Polar and Protic

Describes a type of solvent that has a polar bond and is capable of donating hydrogen ions (protons).