For each of the following statements indicate whether the statement is true or false.

a. The objective of the fourth standard of reporting is to enable users of financial statements to determine the extent to which financial statements reported on by an auditor may be relied on.

b. The auditor will express an adverse opinion when the auditor has been pre- vented by management from obtaining sufficient competent evidential matter.

c. The auditor need not explain the reason for a qualified opinion, provided the qualifying phrase refers to a note to the financial statements that explains the matter fully.

d. The auditor may express an unqualified opinion on a balance sheet, but express a qualified opinion on the income statement for the period ended on the balance sheet date.

e. When a client imposes restrictions on the scope of an audit, the auditor's decision about the type of report to issue depends entirely on the materiality of the financial statement items to which the restriction relates.

f. When a client does not disclose essential information in financial statements, the auditor ordinarily should provide the information in the audit report and express a qualified or adverse opinion.

g. When the auditor disagrees with management concerning the outcome of a future event, the auditor may express an unqualified opinion.

h. When part of the audit has been made by other independent auditors, but the auditor intends to express an unqualified opinion, the division of responsibility must be clearly disclosed in an explanatory paragraph.

i. Rule 203 permits a departure from generally accepted accounting principles when following the correct accounting principle would result in misleading financial statements.

j. When an annual report contains materially inconsistent "other information," the auditor would express an unqualified opinion on the financial statements even if the material inconsistency is not removed.