A Client Decides to Change Accounting Procedures for Certain Types

question 51

Multiple Choice

A client decides to change accounting procedures for certain types of transactions which have a material impact on the financial statements. The client changes from the LIFO method of inventory valuation to the FIFO method without justification. The auditor should issue what type of opinion?

• A) Adverse opinion.
• B) Disclaimer of opinion.
• C) Qualified opinion.
• D) Depending on the circumstances, the auditor may choose either "a" or "c" above.

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Definitions:

Great Britain

A sovereign nation located off the northwestern coast of mainland Europe, comprising England, Scotland, and Wales.

Union Blockade

The naval strategy by the Union during the American Civil War aimed at preventing the Confederacy from trading through its ports, significantly impacting the southern economy.

Northern Women

Refers to women who lived in the Northern states of the USA, especially during the 19th century, who were often involved in abolitionist, feminist, and other social reform movements.

Women's Suffrage

The movement advocating for the right of women to vote and run for public office, which succeeded with the adoption of the 19th Amendment to the U.S. Constitution in 1920.