1- (TCO B) Alan, a CPA is participating in an audit engagement of ABC Company. He has performed the audit and has determined that an unqualified opinion is to be issued but he would like to expand on the rationale for the unqualified opinion. Please describe the five situations in which an explanatory paragraph would be necessary in an unqualified opinion

2- (TCO B) If the auditor believes that there is a probable likelihood of a material loss resulting from an uncertainty that is sufficiently supported and disclosed, which type of opinion should be issued?

3- (TCO B) Explain the CPA Vision Project in your own words. Please keep your posts down to around a paragraph at most. This is a conversation and not an essay area. Stay away from merely agreeing with another classmate, and add some additional information to your comments to bolster your opinion.

What is meant by "moving up the economic value chain," and how are CPAs going to accomplish this?

After we have established an understanding of the overall view of the auditing profession, we will move quickly into a discussion of the various regulatory influences the CPA auditor is subject to, how they affect the profession, and under what conditions an auditor will depart from issuing an unqualified report.

4- (TCO B) How does the Sarbanes-Oxley legislation as it relates to auditor independence restrict and/or enhance the ability of public accounting firms to move up the value chain?

"AUDITOR INDEPENDENCE

Sarbanes-Oxley prohibits all registered public accounting firms from providing audit clients, contemporaneously with the audit, certain nonaudit services including internal audit outsourcing, financial-information-system design and implementation services and expert services. These scope-of-service restrictions go beyond existing SEC independence regulations. In addition, all other services, including tax services, are permissible only if preapproved by the issuers audit committee and all such preapprovals must be disclosed in the issuers periodic reports to the SEC. " These changes have been highly criticized, as the remaining "Big Four" accounting firms which perform most of the audits of large U.S. corporations have been negatively impacted by not being able to do other types of work for these clients. Further, many foreign corporations that have been listed on the U.S. stock exchanges have delisted. What are your thoughts on this issue?

5- (TCO B) Since implementation of Sarbanes-Oxley, the number of IPOs in the US has decreased dramatically. What are the pro's and con's of this consequence?