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NEW QUESTION: 1
Digit Co. uses the FIFO method of costing for its international subsidiary's inventory and LIFO for its
domestic inventory. Under these circumstances, the auditor's report on Digit's financial statements should
express an:
A. Adverse opinion.
B. Opinion qualified because of a lack of consistency.
C. Opinion qualified because of a departure from GAAP.
D. Unqualified opinion.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. GAAP allows a company to use different methods for costing different inventories as
long as the methods are disclosed. Thus, the audit report would be unqualified; there is no departure from
GAAP.
Choice "B" is incorrect. The consistency standard refers to changes in application of accounting practices
between periods, affecting the comparability of financial statements. There is no indication Digit made any
change in methods.
Choice "C" is incorrect. Use of different methods for costing inventory is permissible under GAAP, and
would not result in a qualification of the auditor's report.
Choice "D" is incorrect. Use of different methods for costing inventory is permissible under GAAP, and
would not result in an adverse report.
NEW QUESTION: 2
Which component in DNA Center achieves automation?
A. Network Control Platform
B. Tetration
C. Network Data Platform
D. Identity Services Engine
Answer: A
NEW QUESTION: 3
A. Option B
B. Option D
C. Option A
D. Option C
E. Option F
F. Option E
Answer: C,D,E