An entity changes its depreciationmethod for production equipmentfrom straight line method to units ofactivity method. The effect of thischange is pervasively material. Theauditor does not concur with thechange. The auditor would issue a(n): *Unqualified opinion with anexplanatory paragraph.O Adverse opinionO Qualified opinionUnqualified opinion

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

Answered: Unqualified opinion with an explanatory…

Business

Accounting

Unqualified opinion with an explanatory paragraph. O Adverse opinion O Qualified opinion O Unqualified opinion

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: s1: When the auditor includes an Emphasis of Matter paragraph in the auditor's report, the auditor…

A: Solution : False, When the auditor includes an Emphasis of Matter paragraph in the auditor's report,…

Q: Taking "subject to" means the interest taken is senior to all existing liens and encumbrances of…

A: The concept in the question is related to the priority of liens and encumbrances on a property. When…

Q: 26. In contrast to expert testimony in which the witness is permitted to form conclusions and give…

A: evidence given in court by an expert witness. Unlike other testimony, this evidence may include the…

Q: Why or what are the reason or reasons that would cause the trial balance to be considered as…

A: Trial Balance - After transferring all the transactions into Ledgers Company closes the accounts and…

Q: What is the differences between the reasonableness under the neighbour principle and the reasonable…

A: The question is asking to differentiate between the 'neighbour principle' and the 'reasonable man…

Q: Carrie Tune will receive $30,000 for the next 11 years as a payment for a new song she has written.…

A: The present value of Future payments or receipts is different. Which can be computed by multiplying…

Q: Any evidence lawfully offered at trial to show a disputed topic and persuade the jury to believe…

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

Q: A position with a reasonable basis has which of the following characteristics? - it is…

A: Taxpayer refers to the entity that has earned the desired income and that is subject to the desired…

Q: The Robert Haag case cites the 2002 Ewing case at 94 A.F. T. R. 2nd 2004-6667. What is the Haag…

A: The Robert Haag case cites the 2002 Ewing case for the proposition that "the government may not…

Q: If the previously stated situation is deemed to be a highly material event the type of report that…

A: The adverse opinion indicates that the firm's financial situation is not good and grossly…

Q: Which of the following is a valid defense in a strict products liability case? Group of answer…

A: Strict liability is a theory which describes the consequence and legal responsibility of any damage…

Q: Relevant information meets two criteria: (1) it differs between the alternatives and (2) the…

A: Decision making is a process of choosing one alternative from various alternatives based on relevant…

Q: True or False. The tort of defamation occurs when a person makes any statement that injures…

A: Given: The tort of deformation takes place when the reputation of one is injured by the other.

Q: QUESTION 1 Which fallacy is defending oneself by citing opponentâ s hypocrisy or flaws? O appeal to…

A: The usage of of faulty or invalid reasoning that is used by an individual in the process of…

Q: Which of the following is NOT an element required to recover to establish liability for negligent…

A: Introduction:- A liability is classified as financial assets that an entity has given up to other…

Q: Whichever of the below is NOT a need for establishing responsibility for negligent infliction of…

A: An obligation is defined as financial assets that a business has given up to other entities as a…

Q: 46 Which one of the following types of audit opinion is provided in the clean report? a. Qualified…

A: Auditing means the independent checking of company operation by outsiders. The auditor is qualified…

Q: Which common law approach leads to increased CPA liability to "foreseeable" third parties for…

A: CPA is liable to conduct the professional accounting work. He would be responsible for any…

Q: Why might an auditor decide to disclaim an opinion?

A: Audit refers to the process of reviewing the controls and processes that can be used further by the…

Q: Which of the following does not apply to the term "true and fair"? a. Accurate b. Clear C . Factual…

A: The term true and fair refers to that financial statements are free from any material misstatements…

Q: What are the two primary elements of independence? Independence in fact and independence in…

A: Independence is a fundamental principle in professional ethics, especially in fields like accounting…

Q: TRUE OR FALSE The practitioner plans and performs an assurance engagement using his professional…

A: Lets understand the basics.Audit is an examination of the books of account in order to form an…

Q: The Rule against Perpetuities is a common law restriction against creating interests that would vest…

A: Section 14 of the ‘The Transfer of Property Act, 1882’ (TPA) is rightly called ‘Rule against…

Q: Distinguished between an an unmodified opinion, qualified, adverse opinion and disclaimer of…

A: Auditing is the process of identifying, classifying, summarising and analysing financial information…

Q: Which of the following in NOT a legal element of proof required to recover for defamation? A. The…

A: Defamation is a statement that injures a third party's reputation. It is a false and unprivileged…

Q: an engagement is classified as a limited assurance engage ic a roduuction in assurance engagement…

A: Step 1 The Scope of Assurance Engagement is based on what type of assurance services is to be given,…

Q: In ADR: a) Negotiation has the lowest form of control In regards to the outcome. b) Litigation has…

A: ADR stands for Alternative Dispute Resolution, which refers to a set of processes and techniques…

Q: If a material exception relates to a departure from PFRSs, the auditor may issue either: A.…

A: Solution: If a material exception relates to a departure from PFRSs, the auditor may issue either…

Q: Are KAMs allowed in reports disclaiming an opinion? In adverse opinions? a. Disclaimers Adverse…

A: Key audit matters which are also written as KAMs, are the important or significant matters which are…

Q: K Another name for a "clean" audit opinion is a(n): O A. qualified opinion. OB. adverse opinion. C.…

A: An audit opinion, also known as an auditor's report, is a formal statement issued by an independent…

Q: 1. Which of the following is the proper legal remedy to be availed by the buyer if the seller…

A: The following is the proper legal remedy to be availed by the buyer if the seller committed a breach…

Q: In an Unmodified Opinion with Emphasis-of-Matter / Other-Matter sections, what is the order of the…

A: An unmodified opinion is an opinion on the financial statements that they are true and fair in all…

Q: Assess the circumstances in which an S election versus C may be involuntarily terminated.

A: An S corporation (S corp) and a C corporation (C corp) are two distinct corporate structures with…

Q: What are the key features of the objection and appeal process against the Commissioner’s decision?

A: When making an objection, the following procedure should be followed: The Income Tax Act's Sections…

Q: Which one of the following is NOT a type of audit opinion? Qualified Opinion Adverse Opinion Diverse…

A: The certification given by the professional called auditor on the financial statements of an entity…

Q: In Figure 23-29, a proton is a distance d/2 directly above the center of a square of side d. What is…

A: General guidance Gauss’ law describes the relationship between the flux through a surface…

Q: An oral or written statement made by an out-of-court declarant that is offered in court by a witness…

A: Hearsay means a statement made otherwise than by a person while giving oral evidence in the…

Q: Identify situations in which language in the standard (unmodified) report is modified and the type…

A: Definition:

Question

An entity changes its depreciation
method for production equipment
from straight line method to units of
activity method. The effect of this
change is pervasively material. The
auditor does not concur with the
change. The auditor would issue a(n): *
Unqualified opinion with an
explanatory paragraph.
O Adverse opinion
O Qualified opinion
Unqualified opinion

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A "clean" opinion is also called a(n): exemplary opinion. O unmodified opinion. O unbiased opinion. O outstanding opinion. O qualified opinion.
Common elements of mediation include a. an evaluative process O b. written award by the mediator that can be reduced to judgment under state law O c. a facilitative role for the mediator O d. All of these O e. A and C only
What is the difference between a CPA’s unqualified opinion or “clean” opinion and a qualified one?
True/False Question 1 Causation is not required for an intentional tort. Select one: O True O False True/False Question 2 Public disclosure of private facts is a form of invasion of privacy. Select one: O True O False True/False Question 3 One of the elements of negligence is the duty to exercise reasonable care. Select one: O True O False True/False Question 4 Strict liability is not imposed in product liability. Select one: O True O False
What are the major differences in wording for qualified opinions and adverse opinions issued asa result of departures from GAAP?
A practitioner may offer a(n)________________after receiving a pre-allegation letter in order to prevent disciplinary proceedings from moving forward. A. affirmative defence B. rebuttal testimony C. contra-complaint letter D. consent to
This is the Equitable Adjustment method used when accurate cost information is available: O Reasonable Cost Method O Jury Verdict Method O Total Cost Method O Reasonable Value Method
TO whom it may concern, I was wondering to know following details for question. Explain relevant law General RuleException Apply law to key facts General Rule Exception
In defamation law, a claim which is not expressly stated but may be reasonably inferred from other statements made is described as an implied term Ob. b. a privileged statement OC. an imputation O d. fair comment
Which amendment to the U.S. Constitution covers a person’s right not to testify against himself? A. Fifth Amendment. B. Fourth Amendment. C. Sixth Amendment. D. Fourteenth Amendment.
Explain the doctrine of judicial precedent and the ways a judge can avoid following a precedent by distinguishing or overruling a case.
State THREE (3) conditions that would require a departure from an unqualified opinion and give ONE (1) specific example of those conditions.