Question
You are the auditor of Home Buyers Ltd for the year ended 30 June 2019. You have identified a material misstatement of the property, plant
You are the auditor of Home Buyers Ltd for the year ended 30 June 2019. You have identified a material misstatement of the property, plant and equipment account. Home Buyers has not changed its depreciation rates for the past four years. However, recent technological changes in the industry have convinced you that the useful lives of Home Buyers' assets need to be adjusted downwards, resulting in an increased depreciation charge. Home Buyers 's management have refused to update any change to the depreciation rates, despite you explaining that this will put them in breach of the requirements regarding impairment tests contained in AASB. Explain the auditor's opinion you would issue for Home Buyers for the year ended 30 June 2019. (3 marks)
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