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form of opinion you would consider the most appropriate to use

form of opinion you would consider the most appropriate to use

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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question 14

You are the auditor of VIT Ltd. For the financial year ended 31 December 2018, VIT disclosed in its financial statements that it has not conducted impairment testing of its property, plant and equipment. Management's explanation was that they have no intention of selling the assets and that asset values change all the time. VIT's property, plant and equipment account balance at year end was $91 million higher than recoverable amount. Required: Select which form of opinion you would consider the most appropriate to use. Give reasons.
Transcribed Image Text:You are the auditor of VIT Ltd. For the financial year ended 31 December 2018, VIT disclosed in its financial statements that it has not conducted impairment testing of its property, plant and equipment. Management's explanation was that they have no intention of selling the assets and that asset values change all the time. VIT's property, plant and equipment account balance at year end was $91 million higher than recoverable amount. Required: Select which form of opinion you would consider the most appropriate to use. Give reasons.
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