4. A client has changed its estimate of likely doubtful accounts from 2% of credit sales to 3%. The auditor believes the change to be reasonable. [Select] [ Select] 5. The auditor discovered a material overstatement of revenues; however, the client failed to correct the misstatement. The overstatement is pervasive. [ Select] [ Select L Industries, the audit client, experienced a significant decline in the value of its real estate investment perties during the past year because of a downturn in the economy. XXL Industries has appropriately ognized the decline in market value in accordance with GAAP. However, the auditors wish to emphasize decline in the economy and the impact on XXL Industries' financial position and results of operations fo current year's audit report. Select Select audit team was unable to satisfy themselves as to the fairness of the several account balances throG The audit team was unable to satisfy themselves as to the fairness of the several account balances throu alternative procedures. The account balances are material and the issue is considered to have a pervasi impact on the financial statements. [ Select] [ Select ] ecline in market val [ Select ] economy and the Unmodified audit opinion audit report. [S Qualified audit opinion However, the a cial position a Select ] of the severa Adverse audit opinion as unable to satisf ures. The accoun Disclaimer of opinion ncial statements. [ Select] issue is consi Ms, [Select]