Question

In case of insufficient provision for the depreciation, what type of audit report can an auditor submit?

• A. Qualified
• B. Unqualified
• C. Adverse
• D. Piecemeal

Answer 1

The correct option is A Qualified

The real essence of providing the depreciation is to make adequate arrangement of funds for replacing the assets when these becomes useless by setting aside a part of profit every year to accumulate the fund.

If the auditor is not satisfied with the amount of depreciation provided or insufficient depreciation provided, he should qualify the audit report.