Management has recorded prepaid insurance as an asset in the previous year.This year,to reduce record-keeping costs,it expenses insurance.If the amount is immaterial to the financial statements,

Question

Quizplus · Accepted Answer

If the amount of prepaid insurance that was expensed is immaterial to the financial statements, it would not have a significant impact on the overall accuracy or completeness of the financial statements. Therefore, a standard unmodified opinion audit report can be issued.

Management Has Recorded Prepaid Insurance as an Asset in the Previous