A client decides to change accounting procedures for certain types of transactions which will have a material impact on the financial statements. The client adopts an accounting change promulgated by GAAP but this change has no effect on the current period financial statements. The auditor should issue what type of opinion?
A) Qualified opinion.
B) Unqualified opinion.
C) Disclaimer of opinion.
D) Depending on the circumstances, the auditor may choose any of the above.

Question

Quizplus · Accepted Answer

The fact that the accounting change has no effect on the current period financial statements means that the financial statements are presented fairly in accordance with GAAP. As such, an unqualified opinion can be issued.

A Client Decides to Change Accounting Procedures for Certain Types