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:

Farming

The practice of cultivating plants and livestock to produce food, fiber, medicinal plants, and other products to sustain and enhance human life.

Opportunity Cost

The importance of the top second option lost by deciding on a particular path.

Farming

The practice of cultivating the land or raising stock, such as the growing of crops or the raising of livestock to produce food, fiber, and other materials.

Brocolli

A green vegetable with a large flowering head, often consumed for its nutritional value.