On 2 July 20X0 Pretty Paint Ltd Received a Notice

Multiple Choice

On 2 July 20X0 Pretty Paint Ltd received a notice from its primary suppliers that all wholesale prices would be increased by 10%, to be effective immediately. On the basis of the notice Pretty Paint Ltd revalued its 30 June 20X0
Inventory to reflect the higher costs. The details of the adjustment were disclosed in the notes to the financial report.The inventory adjustment was material. The auditor of the 30 June 20X0 financial report would issue:

A) an unmodified opinion with an Emphasis of Matter of disclosure.
B) a disclaimer of opinion.
C) a qualified opinion.
D) an unmodified opinion.