If an audit client has not consistently applied accounting principles, and the auditor does not concur with the appropriateness of the change, either an unmodified, a qualified, or an adverse opinion should be issued, depending on the materiality level involved.

Question

Quizplus · Accepted Answer

The type of opinion issued (unmodified, qualified, or adverse) depends on the auditor's assessment of the materiality and appropriateness of the accounting principle change. If the change is not appropriately justified or materially misstates the financial statements, a qualified or adverse opinion may be necessary.

If an Audit Client Has Not Consistently Applied Accounting Principles