A client switches from the straight-line to the written down value method of depreciation and discloses the change in a note. The effect on this year’s financial statements is immaterial, but future periods are expected to be significantly affected. What opinion should the auditor give?
Correct answer C. Unqualified opinion
Explanation
Because the change is properly disclosed and its current effect is immaterial, the statements still give a true and fair view, so the auditor issues an unmodified opinion.
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