75. An entity changed from the straight-lin e method to the declining balance of depreciation for all newly acquired assets. This change has no material e on the current year's financial statements but is reasonably certain to have a to the financial substantial effect in later years. If the change is disclosed in the notes statements, the auditor should issue a report with and) A. qualfied opinion 8 unqualified opinion with explanatory paragraph. C.unqualified opinion. D. qualified opinion with explanatory paragraph regarding consistency. 76, A CPA will issue an adverse auditor's opinion if .the scope of the audit is limited by the dient. B, the exception to the fairness of presentation is so material that an except for opinion is not justified C. the auditor did not perform sufficient auditing procedures to form an opinion on the financial statements taken as a whole. D. major uncertainties exist concerning the company's future. 77. An auditor would most likely disclaim an opinion because of A the client's failure to present supplementary information required by the FASB B. inadequate disclosure of material information. C. A client-imposed scope limitation. D. the qualification of an opinion by the other auditor of a subsidiary when responsibility has been divided 78 Under which of the following sets of circumstances should an auditor issued 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. 79. What is the meaning of the GAAP that requires the auditor be independent ? A. The auditor must be without bias with respect to the client under audit. B. The auditor must adopt a critical attitude during the audit. C. The auditor's sole obligation is to third parties. D. The auditor may have a direct ownership interest in the client's business if t is not material 80. The independent audit is important to readers of financial statements because it A determines the future stewardship of the management of the company whose financial statements are audited. B, measures and communicates financial and business data included in financial statements C. Involves the objective examination of and reporting on management-prepared statements D. reports on the accuracy of all information in the financial statements. 81. An auditor strives to achieve independence in appearance to A. Maintain public confidence in the profession. B. become independent in fact. .comply with the GAAS of field work. D. maintain an unbiased mental attitude