5) In which of the following circumstances would an auditor most likely express an adverse opinion?

1. The CEO refuses to let the auditor have access to the board of director meeting minutes.
2. The financial statements are not in conformity with the FASB statement on loss contingencies.
3. Information comes to the auditor's attention that raises substantial doubt about the ability for the client to continue as a going concern.
4. Tests of controls show that the internal control structure is so poor that the auditor has to assess control risk at the maximum.

6) Under which of the following sets of circumstances should an auditor issue a qualified opinion?

a. The financial statements contain a departure from generally accepted accounting principles, the effect of which is material.

b. The principal auditor decides to make reference to the report of another auditor who audited a subsidiary.

c. There has been a material change between periods in the method of the application of accounting principles.

d. There are significant uncertainties affecting the financial statements.

7) In which of the following circumstances would an auditor be most likely to express an adverse opinion?

a. The chief executive officer refuses the auditor access to minutes of board of directors meetings.

b. The companys internal controls are so poor that they cannot be relied upon.

c. The financial statements are not in conformity with the FASB Statements regarding the capitalization of leases.

d. Information comes to the auditors attention that raises substantial doubt about the entitys ability to continue as a going concern.

8) An emphasis of a matter paragraph inserted in a standard audit report causes the report to be characterized as:

a. Unmodified

b. Divided responsibility

c. Adverse

d. Qualified