Question
An equipment which was used by the client for more than 5 years is considered to be outdated due to new technology that evolve in
An equipment which was used by the client for more than 5 years is considered to be outdated due to new technology that evolve in the recent years. The equipment is 140,000 as at year end date and the recoverable amount at that date is $110000. The company believed the equipment can still be used and do not record any impairment on the financial statements. The net income of the client company is $600,000.
Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion. Draft the opinion paragraph and any corresponding basis of opinion paragraph.
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