626 Chapter 22 Case 2 report Items (1) through (7) present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of modification (if any) that would be necessary. For each situation, select one opinions the auditor ordinarily would issue, while List B represents the r response form List A and one from List B. Select as the best answer for each item the action the auditor would normally take. The types of opinions in List A and the report modifications in List B may be selected once, or not at all, Assume these conditions: The auditor is independent. The auditor previously expressed an unmodified opinion on the prior year's financial statements. Only single-year (not comparative) statements are presented for the current year. The conditions for an unmodified opinion exist, unless this contradicted in the factual situations.. The conditions stated in the factual situations are material. No report modifications are to be made except in response to the factual situations. Example: The following is an example of the manner in which the items should be answered. Item: The financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with financial reporting standards. Answer: B, Q Items to be Answered: A. In auditing the long-term investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient competent evidential matter regarding this investment cannot be obtained.