Because of increasing profits and inventory prices, the company changed from FIFO to LIFO inventory, which had a material effect on inventory and cost of sales. The change is adequately disclosed in the financial statements, and the auditor concurs with the change. The auditor will most likely issue alan): Standard unmodified opinion Unmodified opinion with explanatory paragraph O Unmodified opinion with changes to standard report wording O Qualified opion O Disclaimer of opinion Adverse opinion

Q: A typical substantive procedure for inventory balance and purchase transactions may include…

A: The question is related to the Substantive audit procedures. The Substantive audit procedures are…

Q: 6. The auditors were not permitted to observe the taking of the client's physical inventory, a…

A: Auditing means the independent checking of company operation by outsider.

Q: Ethics within inventory estimates and other creative accounting methods. Channel stuffing, swaps,…

A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…

Q: The auditor computed inventory turnover and compared it to prior years.  This substantive test…

A: Auditing inventory refers to cross-checking the physical inventory with the inventory reported in…

Q: 1)Which of the following is not an audit procedure for inventories? a)Review cut-off of inventory…

A: The objective of the first question is to identify the option that is not an audit procedure for…

Q: Ques: 15 Due to a conflict of interest discovered between another audit firm and Jamal Corp., your…

A: The auditing in a company is very important to prepare the financial statements of the company in a…

Q: You are testing inventory.  You determined that inventory exists, nothing is missing from inventory,…

A: The following are some examples of inventory risks: Due to the difficulty of valuing inventory, it…

Q: When a company changes its inventory method to LIFO, an exception is made for the way accounting…

A: Explain the difference in the accounting treatment of a change to the LIFO inventory method from…

Q: When auditing merchandise inventory at year-end, the auditor performs audit proceduresto obtain…

A: Given information is: When auditing merchandise inventory at year-end, the auditor performs audit…

Q: " In our opinion, the financial statements give a true and fair view of the state of the Company's…

A: An auditor is required to verify and check the accuracy of the financial records of the business. He…

Q: The accounts in the working trial balance are usually the summary accounts to appear in the…

A: A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into…

Q: ABC Oil Exploration was undergoing a financial statement audit. The auditors could not obtain…

A: Option A, "No impact on the audit report," is incorrect because the auditors' inability to obtain…

Q: 2. Consider the following statements: I. Inconsistent application of accounting principles (i.e. a…

A: Please find the answer to the above question below:

Q: Determine what report (unqualified, qualified, adverse, or disclaimer) is appropriate Your client…

A: Unqualified Opinion with an additional explanatory paragraph

Q: 3. Allocation and valuation. 4. Understandability and classification. 1, 2.

A: Financial statements refer to the collection of all the balance sheets, income statements, etc to…