1..

For the following situation, please indicate:

A. The type of audit opinion that 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-

During the year, your client adopted new GAAP accounting standards concerning the recognition of revenue. Your firm has determined that because of the new standards, your AICPA audited client's financial statements may be materially misleading but the lack of sufficient evidence precludes the auditor from fully investigating the amounts.

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

2.

As the PCAOB worked to revise the current audit report, the standards setters hoped to address the "expectations gap." Please discuss one way you feel the current modifications to the PCAOB report addresses the expectations gap.

3.

Tamarah is an audit partner and has been servicing a particular audit client since she stared her career, 20 years ago. Please evaluate whether perceptions of her independence may be impaired and include any potential solutions her audit firm can propose under the conceptual framework to address potential independence concerns.

4.

For the following situation, please indicate:

A. The type of audit opinion that 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 client is an accelerated filer and the firm has been performing its audit since 2015. Throughout this time, your audit team has indicated a higher risk of material misstatement to the recording of intangible accounts and has sought advice from the client's board of directors and audit committee in successfully auditing and reporting on the complicated and subjective amounts.

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

5.

For the following situation, please indicate:

A. The type of audit opinion that 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 has adopted a new GAAP method for recognizing pension liabilities and expenses. The impact of the new method is material to the current year financial statements and the auditor is satisfied as to his client's recording and disclosure of the impacts of the new accounting policy.

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