The auditor's standard report contains the words generally accepted auditing standards, auditing procedures, and generally accepted accounting principles.

Required:

a. Indicate the paragraphs of the standard report in which each term appears.

b. Distinguish between the three terms.

c. Why is it important that the auditor state that the audited financial statements are in conformity with GAAP?

d. What type of opinion is required if the accounting principles are applied on an inconsistent basis?