6:51 PM a msudenver.blackboard.com Sprint LTE Exercise: Audit Opinions Exercise Several independent audit situations are presented here Assume everything other than what is described would have resulted in an unmodified opinion on the company's financial statements. Indicate the type of opinion you believe should be expressed in each situation. Opinions - Standard Unmodified - Unmodified with Explanatory Language - Qualified - Adverse - Disclaimer of Opinion a. The auditor was unable to obtain confirmations from two of the client's major customers that were included in the sample. These customers wrote on the confirmation letters that they were unable to confirm the balances because of their accounting systems. The auditor was able to achieve satisfaction through other audit procedures b. The client treated a lease as an operating lease, but the auditor believes it should have been accounted for as a capital lease. The effects are material c. The client changed from FIFO to LIFO this year (under audit). The effect is material. Address each of the following situations i. The change was properly accounted for, justified, and disclosed. ii. The change was properly accounted for and disclosed but was not properly justified