Coggin Ltd changed from the straight-line method to the declining balance method of depreciation for all newly acquired assets.This change has no material effect on the current year's financial report but is reasonably certain to have a substantial effect in later years.If the change is adequately disclosed in the notes to the financial report the auditor should issue a report with a(n):
A)consistency modification.
B)unmodified opinion.
C)explanatory paragraph.
D)qualified opinion.

Question

Quizplus · Accepted Answer

The change in depreciation method has no material effect on the current year's financial report, and the change is adequately disclosed in the notes to the financial report. Therefore, the auditor should issue an unmodified opinion as there is no need for a modification or explanatory paragraph.

Coggin Ltd Changed from the Straight-Line Method to the Declining