6. The auditors were not permitted to observe the taking of the client's physical inventory. a significant portion of the company's financial statements. What would this seem to involve? a. Lack of attitude b. Lack of consistency. c. Lack of evidence. d. Lack of independence. 7. An audit of the Flagler Company, a diamond mining company, brings to light the fact that its equipment has been marked up to the owners' expectation of market values. Such a situation will most likely result in which type of report? a. Disclaimer b. Review. C. Adverse. d. Unqualified, with explanatory paragraph. 8. In which of the following situations would an auditor originally choose between expressing a qualified opinion or an adverse opinion? a. The auditor did not observe the entity's physical inventory and is unable to become satisfied about its balance by other auditing procedure b. Conditions tht cause the auditor to have substantial doubt about the entity's ability to continue as a going concern are inadequately disclosed. C. Both a and b. 9. Consider Special Reports. What type involves a different basis of accounting? a. Agreed-upon-procedures b. Compliance Report. c. Special Purpose Framework. d. Specified Elements, Accounts. 10. No Response is Necessary. Have a Wonderful New Year