20) After the balance sheet date but prior to issuance of the auditor's report the auditor learns that the 20) client's facility in a foreign country has been expropriated. Management refuses to disclose this information in a financial statement footnote or present pro-forma data as to the effect of the event. The auditor should A) add a footnote to the financial statements B) provide the information in the report and modify the opinion. C) issue an unqualified opinion but provide the information in the auditor report. D) disclaim an opinion due to the client imposed scope limitation 21) After the auditor determines whether any conditions exist which require a departure from a 21) standard unmodified opinion audit report, the next step in the decision process is to A) decide the materiality for each condition. B) discuss the report with management. C) decide the appropriate type of report for the condition. D) write the report. 22) Which of the following statements are true for the standard unmodified opinion audit report of a 22) nonpublic entity? I. The introd uctory paragraph states that management is responsible for the preparation and content of the financial statements Il. The scope paragraph states that the auditor evaluates the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. A) I only B) II only C) I and II D) Neither I nor lI 23) 23) When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue A) an adverse opinion. B) a disclaimer of opinion C) either a qualified opinion or an adverse opinion. D) either a qualified opinion or an unqualified opinion with modified wording 24) In most audits, the auditor issues a(n) 24) A) adverse audit report B) scope limited audit report. C) modified opinion aud it report. D) standard unmodified opinion audit report 25) Which of the following is a correct statement regarding the standard unmodified opinion audit 25) report? A) The scope paragraph includes a statement that the auditor considers internal controls when designing the audit procedures performed. B) The auditor's responsibility paragraph includes a statement that the auditors are responsible for selecting the appropriate accounting principles C) The audit report includes the name of the lead partner on the audit. D) The format of the audit report for public and nonpublic entities are identical