23. The National Association of Insurance Commissioner (NAIC) requires your insurance company client to present certain supplementary information in addition to the basic financial statements. However, while not required for the basic financial statements, your client has omitted the information required by the NAIC. 24. A client holds a note receivable consisting of principal and accrued interest, payable during the next fiscal period. The note's maker recently filed a voluntary bankruptcy petition, but your client failed to reduce the recorded value of the note to its net realizable value, which is approximately 20% of the recorded amount. 25. What would your answer be if the preceding amount currently recorded by the client is considered pervasive regarding the client's overall financial position? 26. An auditor is engaged to audit a client's financial statements after the annual physical inventory count. The accounting records are not sufficiently reliable to enable the auditor to become satisfied as to the year-end inventory balances. 27. What would your answer be if the preceding inventory currently recorded by the client is considered pervasive regarding the client's overall financial position? 28. A client's financial statements do not disclose certain long-term lease obligations. The auditor determines that the omitted disclosures are required by FASB. 29. A group auditor decides not to take responsibility for the work of another audit firm that audited a wholly- owned subsidiary of the principal (group) auditor's client. The total assets and revenues of the subsidiary represent 27% and 28% respectively, of the related consolidated totals. 30. A client changes its method of accounting for the cost of inventories from FIFO to LIFO. The auditor concurs with the change although it has a material effect on the comparability of the financial statements. 31. Due to losses and adverse key financial ratios, an auditor has substantial doubt about a client's ability to continue as a going concern for a reasonable period of time. The client has adequately disclosed its financial difficulties in a note to its financial statements, which do not include any adjustments that migh result from the outcome of this uncertainty. materially misstated Types of Opinions A. An unmodified opinion. B. A qualified opinion. C. A disclaimer of opinion. D. An adverse opinion