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npdtan92 npdtan92
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A year ago
Subsequent to the close of Spacely Sprockets fiscal year ending October 31, 2019, a major debtor has declared bankruptcy due to a series of events. The receivable is significantly material in relation to the financial statements, and recovery is doubtful. The debtor had confirmed the full amount due to Spacely Sprocket at the balance sheet date. Because the account was confirmed at the balance sheet date, Spacely refuses to disclose any information in relation to this subsequent event. The CPA believes that all other accounts were stated fairly at the balance sheet date. In addition, Spacely changed their method of inventory valuation from FIFO to LIFO. This change was disclosed in Note X to the financial statements. Accordingly, what type of opinion should be expressed?

▸ unqualified with an explanatory paragraph

▸ qualified due to a GAAP departure

▸ qualified due to a scope limitation

▸ a combination of qualified due to a GAAP departure and qualified due to a scope limitation
Textbook 
Auditing and Assurance Services

Auditing and Assurance Services


Edition: 17th
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neginakbarinneginakbarin
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A year ago
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npdtan92 Author
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A year ago
Brilliant ツ
kobbhy
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Yesterday
Thank you, thank you, thank you!
TheMoffattMan
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2 hours ago
Just got PERFECT on my quiz
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