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2 Aume you are the partner in charge of the 2012 audit of Becker Corporation audit report has not yet been prepared. In each independen
2 Aume you are the partner in charge of the 2012 audit of Becker Corporation audit report has not yet been prepared. In each independen indicate the appropriate action (a-g) to be taken. The possible actions are as follows t situation following (1-8), a Issue a standard unqualified report. h Quality both the scope and opinion paragraphs. Qualify the opinion paragraph. d Issue an unqualified opinion with an explanatory paragraph. e Issue an ungqualified opinion with modified wording (no explanatory paragraph). Disclaim an opinion. The situations are as follows: current market values. Current market values exceed historical cost by a highly material 1) Becker Corporation carries its property, plant, and equipment accounts at amount, and the effects are pervasive throughout the financial statements. make, any counts of inventory. The recorded book value of inventory is highly material. However, because of detailed sales and cash receipts records, you were able to perform 2) Management of Becker Corporation refuses to allow you to observe, or 3) You were unable to confirm accounts receivable with Becker's customers. reliable altermative audit procedures on the Becker engagement owns a material amount of Becker's common stock. you were the principal auditor, the other firm audited a material portion of the financial 4) One week before the end of fieldwork, you discover that the audit manager 5) You relied upon another CPA firm to perform part of the audit. Although statements. You wish to refer to the other firm in your report. 6) You have substantial doubt about Becker's ability to continue as a going concern. 7) Becker Corporation changed its method of computing depreciation in 2012. You concur with the change and the change is properly disclosed in the financial statement footnotes. 8) Ten days after the balance sheet date, one of Becker's buildings was destroyed by a fire. Becker refuses to disclose this information in a footnote to the financial statements, but you believe disclosure is required to conform with GAAP. The amount of the uninsured loss was material, but not highly material
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