Management Has Decided That the Life of a Piece of Heavy

question 50

Multiple Choice

Management has decided that the life of a piece of heavy equipment should be decreased from 15 years to 10 years,thus increasing the annual amortization.The auditor agrees that this amortization period is more reflective of the nature of the asset.The type of audit report that should be issued is ________.

• A)unqualified
• B)qualified
• C)adverse
• D)disclaimer

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Definitions:

Incoming CEOs

Newly appointed chief executive officers who are taking over leadership roles within an organization.

Earnings

The amount of profit that a company produces during a specific period, indicating the financial performance and profitability.

Executive Change

The process or event of a change in the leadership or management team within an organization, which can have significant impacts on the strategic direction and performance of the company.

Bad Debt Expense

An expense account reflecting the estimated amount of receivables that are not expected to be collected due to customer defaults.