The client has changed from double declining balance to straight line depreciation for its equipment. The effect on this year’s income is material, and no information is disclosed in footnotes related to the change. You believed the change aligns with change in usage pattern of the equipment, except that adequate disclosure is made relating to the change of depreciation method after your advice, will your opinion be different? Q) Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.

Q: What will the auditor NOT consider when reaching a conclusion on the results of substantive…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…

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: The auditor should seriously consider the profitability of the engagement , when he decides whether…

A: The auditor should seriously consider the profitability of the engagement , when he decides whether…

Q: the following independent situation, discuss the issue and describe the impact on the audit record…

A: The auditor is accountable for presenting the most adequate audit report.

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: Eagle Company, a public company, had a computer failure and lost part of its financial data As a…

A: The scenario involves Eagle Company, a public company, experiencing a computer failure that resulted…

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: The auditor should see to it that fully depreciated property, plant, and equipment still in use must…

A: As long as a fully depreciated plant asset is still useful to the firm, the asset and its…

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: Indicate whether you agree or disagree with each statement, and explain your reasoning.   Each of…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Corrective action has been taken by an auditee immediately after the identification of a reportable…

A: Auditors may come across various errors which they may refer to the management.  Management also…

Q: 10. Which of the following situations would lead an auditor to test controls over long-lived assets?…

A: Introduction:- Long live assets means, Which are are look forward to contribute future economic…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: Lets understand the basics. Risk assessment procedure in audit is done by the audit to obtain the…

Q: 1 are an au it senior ha

A: Contingent means an event that may occure in future.…

Q: Which of the following elements must Hex prove to hold West liable?a. West rendered its opinion with…

A:

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: Do you believe that the events immediately following GM's bankruptcy alleviated the concerns that…

A: Answer:- In the annual report of the GM. The corporation is recurring losses from the operations,…

Q: A company has been making losses on its operations due to many factors such as competition,…

A: Professional Skepticism: To demonstrate professional skepticism implies to have a questioning…

Q: Statements 1. A December 30 acquisition of a new plant asset was recorded after year-end rather than…

A: The preparation, designing, and documentation of internal controls are that of the management. Once,…

Q: When auditors wish to issue an unmodified opinion but highlight that the entity changedits method of…

A:

Q: Unqualified opinion with an explanatory paragraph. O Adverse opinion O Qualified opinion O…

A: Depreciation is the decrease in the value of asset with the passage of time due to wear and tear.

Q: materiality level

A: Option a is wrong because the auditor can not measure the amount of undetected misstatements. Option…

Q: Which of the following statements is incorrect?

A: In order to authenticate the financial statements which has been prepared by the company and in…

Q: -8. Assume, that the auditor decideș to only, perform substantive tests of details when auditing the…

A: The Correct option is - (c) - It means in both the situations given in option (a) and in option (b)…

Q: For every of the following independent situation, discuss the issue and describe the impact on the…

A: Auditing is the inspection of the financial records of the company or organisations with no bias and…

Q: state the type of audit opinion which should be expressed

A: Since you have asked questions but have not provided the remaining part of the question but…

Q: 1) The auditors analyze repairs and maintenance expense to: a)determine that plant & equipment…

A: 1) The auditors analyze repairs and maintenance expense to determine that all maintenance items are…

Q: The company you audited recently did not have any knowledge in asset management and therefore does…

A: Assets Management Basically, in any form of organisation proper management of investment which are…

Q: Auditors found that the company under audit has not capitalized a material amount fo leases in the…

A: Qualified Opinion: A Qualified Opinion is provided by the Auditor when the company has not provided…

Q: Applying substantive tests to the details of asset and liability accounts as of an interim date,…

A: SOLUTION- Substantive testing is an audit procedure that examines the financial statements and…

Q: An assessment of accounting practices for asset impairments is especially important in the context…

A: The main purpose of introducing impairment of asset accounting standard is to ensure that the assets…

Q: The auditors determined that the entity is suffering financial difficulty and its going-concern…

A:

Q: Which of the following conditions or events would most likely cause an auditor to have substantial…

A: While auditing the financial statements of the client, auditor is responsible to assess the ability…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.