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:

Church And State

The relationship and division between religious institutions and the government, often discussed in the context of secularism and the separation of powers.

Unhealthy Behavior

Actions or habits that negatively affect an individual's physical or mental health.

Medical Professionals

Individuals with specialized education and training in the field of health care, such as doctors, nurses, and therapists, responsible for the diagnosis, treatment, and care of patients.

Shift Over Time

A process of change or evolution in attitudes, behaviors, or conditions, often observed over longer periods.