Select the best answer for each of the following and explain fully the reason for your selection:

a. A material departure from generally accepted accounting principles will result in auditor consideration of:

(1) Whether to issue an adverse opinion rather than a disclaimer of opinion.

(2) Whether to issue a disclaimer of opinion rather than an "except for" opinion.

(3) Whether to issue an adverse opinion rather than an "except for" opinion.

(4) Nothing, because none of these opinions is applicable to this type of exception.

b. The auditors' report should be dated as of the date the:

(1) Report is delivered to the client.

(2) Fieldwork is completed.

(3) Fiscal period under audit ends.

(4) Review of the working papers is completed.

c. In the report of the principal auditor, reference to the fact that a portion of the audit was made by another auditor is:

(1) Not to be construed as a qualification, but rather as a division of responsibility between the two CPA firms.

(2) Not in accordance with generally accepted auditing standards.

(3) A qualification that lessens the collective responsibility of both CPA firms.

(4) An example of a dual opinion requiring the signatures of both auditors.

d. Assume that the opinion paragraph of an auditor's report begins as follows: "With the explanation given in Note 6 , the financial statements referred to above present fairly ..." This is

(1) An unqualified opinion.

(2) A disclaimer of opinion.

(3) An "except for" opinion.

(4) An improper type of reporting.

e. The auditor who wishes to indicate that the entity has significant transactions with related parties should disclose this fact in:

(1) An explanatory paragraph to the auditors' report.

(2) An explanatory note to the financial statements.

(3) The body of the financial statements.

(4) The "summary of significant accounting policies" section of the financial statements.

f. When restrictions that significantly limit the scope of the audit are imposed by the client, the auditor should generally issue which of the following opinions?

(1) Qualified.

(2) Disclaimer.

(3) Adverse.

(4) Unqualified.