A client has changed their method of valuing inventory from FIFO to LIFO and the change has a material effect on the financial statements.If the auditor does not concur with the appropriateness of the change, the auditor should issue a(n):
A)disclaimer.
B)adverse opinion.
C)unqualified opinion.
D)qualified opinion.

Question

Quizplus · Accepted Answer

A qualified opinion is issued when the auditor disagrees with a change in accounting principle that has a material effect on the financial statements.

A Client Has Changed Their Method of Valuing Inventory from FIFO