Types of Audit Opinions
On January 2, 2014, the Zoom Detail Shoppe received notice from its primary supplier that all wholesale prices were being increased by 10%, effective immediately. Based on this notice, Zoom revalued is December 31, 2013 inventory to reflect the higher costs. The inventory is a large proportion of the total assets. The effect of the revaluation was material to current assets, but not to total assets or net income. The increase is adequately disclosed in the footnotes.
REQUIRED:
Which type of audit report would you suggest be issued this year and why?

Question

Quizplus · Accepted Answer

The Answer of Types of Audit Opinions
On January 2, 2014, the Zoom Detail Shoppe received notice from its primary supplier that all wholesale prices were being increased by 10%, effective immediately. Based on this notice, Zoom revalued is December 31, 2013 inventory to reflect the higher costs. The inventory is a large proportion of the total assets. The effect of the revaluation was material to current assets, but not to total assets or net income. The increase is adequately disclosed in the footnotes.
REQUIRED:
Which type of audit report would you suggest be issued this year and why?