1.

For the following situation, please indicate:

A. The type of audit opinion would be issued.

B. If the opinion is other than the standard unqualified: (1) Indicate what changes are required and the location of changes, (2) Include any key wording required by auditing standards in your opinion paragraph.

Situation-

Your AICPA client is having a great deal of difficulties maintaining sufficient working capital and remaining current with their accounts payable. Your audit team notices the client has a viable plan to address their working capital deficiencies, including additional financing, making the auditor substantially less concerned over the client's viablity.

** assume all necessary facts used in forming your decisions are disclosed.

2.Please discuss the idea of reasonable assurance and why its relationship with public expectations is so controversial.

3.

For the following situation, please indicate whether the auditor and audit firm's independence is impaired and please also provide a brief reasoning for your answer.

Situation -

On September 23, 2020 Brian received a job offer from his December 31, 2020 audit client and part of the offer states that Brian is not required to accept and start the new position until April 2021, after the audit is completed. Brian is currently considering the position.

** assume all necessary facts used in forming your decisions are disclosed.

4.

Your client is a family owned Italian food restaurant and had a balance sheet date of 12/31/2019.

Your firm successfully completed its audit and released its unqualified opinion on 2/1/2020.

On 4/5/2020, the state's governor unexpectedly mandated your client's business will be closed indefinitely due to a pandemic, likely resulting in business failure.

What responsibility, if any, does the auditor have towards investors relying on its 12/31/2019 and why?

5.

For the following situation, please indicate whether the auditor and audit firm's independence is impaired and please also provide a brief reasoning for your answer.

Situation -

Tony is an entry level staff member in KPMG's technology nonassurance services group and he holds 100 shares of stock in Feng Devices. Tony has been assigned to perform 50 hours of consulting for Feng Devices.

** assume all necessary facts used in forming your decisions are disclosed.