A client has changed the salvage values of a number of its fixed assets.The auditors of the public company believe that the revised salvage values are realistic.The appropriate report on the financial statements is:
A)Standard unqualified.
B)Unqualified with explanatory language as to consistency.
C)Qualified for consistency.
D)Disclaimer.

Question

Quizplus · Accepted Answer

The auditors believe that the revised salvage values are realistic, therefore there are no issues with the financial statements that require an explanatory note or a qualification. The financial statements can be presented without any reservations, in a standard unqualified report, indicating that they are fairly presented in all material respects.

A Client Has Changed the Salvage Values of a Number