The following questions concern unqualified audi¬ tor's reports. Choose the best response.

a. An auditor's unqualified standard report

(1) implies only that items disclosed in the financial statements and footnotes are properly presented and takes no position on the adequacy of disclosure.

(2) implies that disclosure is adequate in the financial statements and footnotes.

(3) explicitly states that all material items have been dis¬ closed in conformity with generally accepted accounting principles.

(4) explicitly states that disclosure is adequate in the financial statements and footnotes.

b. The date of a public accountant's opinion on the financial statements of a client should be the date of the

(1) receipt of the client's letter of representation.

(2) completion of all important audit procedures.

(3) submission of the report to the client.

(4) closing of the client's books.

c. A primary auditor would refer in the auditor's report to the examination of another auditor because

(1) the other auditor is not the primary auditor's agent.

(2) the work of the other auditor was material in relation to the primary auditor's work.

(3) the primary auditor was unable to express an opin¬ ion without reservation because of an inability to rely on the work of the other auditor.

(4) the primary auditor had doubts as to the competence of the secondary auditor.

(AICPA adapted)