Your client is not using either ASPE or IFRS. Instead, it is using current value accounting with no use of historical cost, because your client is in a country with about 50% inflation per year. Local legislation requires that all resident organizations use current value accounting. How do these events affect the independent auditor's report?
A) The auditor would issue a standard unqualified auditor's report.
B) The auditor would use an emphasis of matter paragraph to explain that the financial statements are prepared in accordance with local legislation.
C) The auditor would use an other matter paragraph to explain that the financial statements are prepared in accordance with local legislation.
D) The auditor would state in the opinion paragraph that the financial statements were prepared in accordance with the local legislation.

Question

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The Answer of Your client is not using either ASPE or IFRS. Instead, it is using current value accounting with no use of historical cost, because your client is in a country with about 50% inflation per year. Local legislation requires that all resident organizations use current value accounting. How do these events affect the independent auditor's report?
A) The auditor would issue a standard unqualified auditor's report.
B) The auditor would use an emphasis of matter paragraph to explain that the financial statements are prepared in accordance with local legislation.
C) The auditor would use an other matter paragraph to explain that the financial statements are prepared in accordance with local legislation.
D) The auditor would state in the opinion paragraph that the financial statements were prepared in accordance with the local legislation.

Your Client Is Not Using Either ASPE or IFRS