The following question concerns auditor's reports other than unqualified reports. Choose the best response.

a.If an auditor issues an adverse auditor's report when there is a very material contingency, the reader of the auditor's report should conclude that

(1) the auditor was not able to form an opinion on the outcome of the contingency.

(2) the auditor became aware of the contingency after the balance sheet date but prior to the audit report date.

3. there were no audit procedures available to the audi¬ tor by which he or she could obtain satisfaction con¬ cerning the outcome of uncertainty.
(4) the note disclosure with respect to the contingency was not adequate.

b. A public accountant will issue an adverse auditor's opin¬ ion if (1) the scope of his or her examination is limited by the client.
(2) his or her exception to the fairness of presentation is so material and pervasive such that an "except for" opinion is not justified.
(3) he or she did not perform sufficient auditing proce¬ dures to form an opinion on the financial statements taken as a whole.
(4) major uncertainties exist concerning the company's future such that an "except for" opinion is not justi¬ fied.

c. An auditor will express an "except for" opinion if (1) the client refuses to provide for a probable income tax liability that is very material and pervasive.
(2) there is? a high degree of uncertainty associated with the client company's future.
(3) he or shg..did not perform procedures sufficient to form an-opip-ion on the valuation of accounts receiv¬ able which are material.
(4) the auditor is basing his or her opinion in part upon work done by another auditor.

d. Under which of the following circumstances should an auditor issue a qualified or adverse opinion?
(1) The financial statements contain a departure from generally accepted accounting principles, the effect of which is material.
(2) The primary auditor decides to make reference to the report of another auditor who audited a subsidiary.
(3) There has been a material change between periods in the method of the application of accounting princi¬ ples.
(4) Note disclosure describing significant uncertainties affecting the financial statements is provided.