If a Client Expensed the Acquisition Cost of Some Assets

question 30

Multiple Choice

If a client expensed the acquisition cost of some assets that should have been capitalized and depreciated over their useful lives,which of the following would be incorrect?

• A)A qualified opinion would be appropriate.
• B)The opinion paragraph should be modified to include language such as: "except for the effects of not capitalizing the acquisition costs of some assets..."
• C)An explanatory paragraph should include the effects of the subject matter of the qualification,where practicable.
• D)An explanatory paragraph should be modified to include language such as: "subject to the qualified act..."

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Definitions:

Commonality

The state or fact of sharing features or attributes among different people, groups, or things, leading to a recognized similarity or bond.

Spectacular Results

Extraordinarily good or impressive outcomes, often exceeding expectations or norms.

Statistical Analysis

The process of collecting, examining, interpreting, and presenting data to discover underlying patterns and trends.

Simple Task

An easy or straightforward activity or job that requires minimal effort or complexity to complete.