An entity changed from the straight-line method to the declining-balance methodof depreciation for all newly acquired assets. This change has no material effect onthe current year’s financial statements but is reasonably certain to have a substantialeffect in later years. If the change is disclosed in the notes to the financial statements,the auditor should issue a report with a(n)(1) qualified opinion.(2) unqualified opinion with explanatory paragraph.(3) unqualified opinion.(4) qualified opinion with explanatory paragraph regarding consistency.

Q: Which of the following statements regarding accounting change is correct? a. Change in depreciation…

A: Accounting changes means when there is some change in the process and methodologies related to…

Q: In evaluating the fair value of net assets in an acquisition the auditor has to gather independent…

A: Audit Evidence -The data that the business's auditor obtains from the business is known as audit…

Q: If a client fails to present to the external auditor a concrete plan or sufficient supporting…

A: The correct option is: Option B (S2 and S3 are true)

Q: If a company registered with the SEC justifies a change in accounting method as preferable under the…

A: Securities Exchange Commission (SEC): This is the government agency governs the working of financial…

Q: The auditing procedure that could least likely lead the auditor to find unrecorded property, plant,…

A: Audit: An audit is a formal verification of an organization's account that is usually conducted by…

Q: Required: For each activity, state: (a) The type of procedure to collect evidence the audit activity…

A: Audit procedures encompass the techniques employed by auditors to scrutinize and evaluate financial…

Q: When comparative financial statements are presented but the predecessor auditor's report is not…

A: There are certain duty and responsibility of auditor that is  sufficient and appropriate audit…

Q: An audit report was dual-dated for a subsequent event disclosed in the financial statements, which…

A: correct option is (2) extended to subsequent events occurring through the date of issuance of…

Q: Which of the following audit objectives is to validate the assertion of existence? *   A. All…

A: Financial statement assertions, also known as management assertions, are a company's official…

Q: Explain why the emphasis in auditing property, plant, and equipment is on the current period…

A: The reason for the emphasis in auditing property, plant, and equipment is on the current period…

Q: Please identify the items the auditors are most likely to find improperly included as miscellaneous…

A: Auditors primary responsibility is to conduct an audit of financial statements and to give an…

Q: When should an impairment loss be recognised? a) Immediately b) When requested by the entity's…

A: Impairment loss is the permanent decrease in the fair value of asset over its carrying value.

Q: 15. An internal control objective concerning property, plant and equipment (PPE) acquisitions is…

A: Risk of Material Misstatement in Auditing of Property Plant and Equipment While conducting the…

Q: Statement 1: The date of the issuance of the financial statements shall be before the date of the…

A: Answer: Given statements as: Statement 1: The date of the issuance of the financial statements shall…

Q: the heightened risk of material misstatement. d. The auditor would perform all of the above…

A: Auditing is the detailed process of checking and verifying books of accounts and assets of the…

Q: Suppose an auditor wants to perform a substantive analytical procedure to provide audit evidence to…

A: Interest expense can be referred to as the amount that is paid or payable on the amount borrowed…