An entity has changed its depreciation method for production equipment from the straight line method...
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Accounting
An entity has changed its depreciation method for production equipment from the straight line method to a units-of-production method based on hours of utilization. The entitys auditor concurs with the change although it has a material effect on the comparability of the companys financial statements. Please assume this entity is a nonissuer (nonpublic company) and auditors follow AICPA auditing standard for this engagement.
Select those opinion types which can be used from the following.
A. Unmodified
B. "Except for" qualified
C. Adverse
D. Disclaimer
Select the appropriate report modification.
Issue the standard auditor's report without modification
Modify the introductory paragraph
Modify the opinion paragraph
Add an explanatory (emphasis-of-matter) paragraph preceding the opinion paragraph
Add an explanatory (emphasis-of-matter) paragraph following the opinion paragraph
Answer & Explanation
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