When a client has not applied IFRS consistently from the prior year to the current year, the auditor does not concur with the appropriateness of the change, and the change in IFRS has a material effect on the financial statements, the auditor should issue a(n):

Question

Quizplus · Accepted Answer

A qualified opinion is issued when the auditor concludes that an unqualified opinion cannot be expressed but that the effect of any disagreement with management, or limitation on scope is not so material and pervasive as to require an adverse opinion or a disclaimer of opinion. In this case, the auditor does not agree with the inconsistency in applying IFRS, which has a material effect, thus leading to a qualified opinion.

When a Client Has Not Applied IFRS Consistently from the Prior