The following questions concern audit reports other than unqualified audit reports with standard wording. Choose the best response.

a. A CPA will issue an adverse auditor’s opinion if

(1) the scope ofthe audit is limited by the client.

(2) the exception to the fairness of presentation is so material that an “except for”

opinion is not justified.

(3) the auditor did not perform sufficient auditing procedures to form an opinion on the financial statements taken as a whole.

(4) major uncertainties exist concerning the company’s future.

b. An auditor will most likely disclaim an opinion because of

(1) the client’s failure to present supplementary information required by the Financial Accounting Standards Board (FASB).

(2) inadequate disclosure of material information.

(3) a client-imposed scope limitation.

(4) the qualification of an opinion by the other auditor of a subsidiary when respon¬

sibility has been divided.

c. The opinion paragraph of a CPA’s report states: “In our opinion, except for the effects of not capitalizing certain lease obligations, as discussed in the preceding paragraph, the financial statements present fairly,” in all material respects, ... This paragraph expresses a(an)

(1) Unqualified opinion.

(2) Unqualified opinion with explanatory paragraph.

(3) Qualified opinion.

(4) Adverse opinion.