If a client expensed the acquisition cost of some assets that should have been capitalized and depreciated over their useful lives,which of the following would be incorrect?
A)A qualified opinion would be appropriate.
B)The opinion paragraph should be modified to include language such as: "except for the effects of not capitalizing the acquisition costs of some assets..."
C)An explanatory paragraph should include the effects of the subject matter of the qualification,where practicable.
D)An explanatory paragraph should be modified to include language such as: "subject to the qualified act..."

Question

Quizplus · Accepted Answer

An explanatory paragraph should not include language like "subject to the qualified act," as this is not standard auditing terminology. Instead, it should clearly explain the effects of the qualification.

If a Client Expensed the Acquisition Cost of Some Assets