Types of Options

A. An "except for" qualified opinion.
B. An unqualified opinion.
C. An adverse opinion.
D. A disclaimer of opinion.
E. Either an "except for" qualified opinion or an adverse opinion.
F. Either a disclaimer of opinion or an "except for" qualified opinion.
G. Either an adverse opinion or a disclaimer of opinion.

Answer(s): B
Explanation:
Choice "B" is the correct opinion. When an accounting change is properly accounted for, an
unqualified opinion should be issued.
QUESTION: 173
This question presents independent factual situations an auditor might encounter in conducting
an audit. List B represents the report modifications (if any) that would be necessary. Select as
the best answer for each item, the action the auditor normally would take. The report
modifications in List B may be selected once, more than once, or not at all.
Assume:
. The auditor is independent.
. The auditor previously expressed an unqualified opinion on the prior year's financial
statements. . Only single-year (not comparative) statements are presented for the current year. .
The conditions for an unqualified opinion exist unless contradicted in the factual situations. . The
conditions stated in the factual situations are material. . No report modifications are to be made
except in response to the factual situation.
Item to Be Answered
An entity changes its depreciation method for production equipment from the straight-line to a
units-of production method based on hours of utilization. The auditor concurs with the change
although it has a material effect on the comparability of the entity's financial statements.
List B Report Modifications

A. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph
without modifying the three standard paragraphs.
B. Describe the circumstances in an explanatory paragraph following the opinion paragraph
without modifying the three standard paragraphs.
C. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph
and modify the opinion paragraph.
D. Describe the circumstances in an explanatory paragraph following the opinion paragraph and
modify the opinion paragraph.
E. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph
and modify the scope and opinion paragraphs.
F. Describe the circumstances in an explanatory paragraph fol owing the opinion paragraph and
modify the scope and opinion paragraphs.
G. Describe the circumstances within the scope paragraph without adding an explanatory
paragraph.
H. Describe the circumstances within the opinion paragraph without adding an explanatory
paragraph.
I. Describe the circumstances within the scope and opinion paragraphs without adding an

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