Question: An entity changed from the straight-line method to the declining balance method of depreciation for all newly acquired assets. This change has no material effect

An entity changed from the straight-line method to the declining balance method of depreciation for all newly acquired assets. This change has no material effect on the current year’s financial statements, but is reasonably certain to have a substantial effect in later years. If the change is disclosed in the notes to the financial statements, the auditor should issue a report with a(n)

a. “Except for” qualified opinion.

b. Explanatory paragraph.

c. Unqualified opinion.

d. Consistency modification.

B.1.e. Certain Circumstances Affecting Comparative Financial Statements

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