8. At the end of an audit the auditor has concluded that there is substantial doubt about the client's ability to continue as a going concern. The client's financial statements include sufficient disclosure of the conditions and events that caused the going concern uncertainty and are otherwise presented fairly in conformity with GAAP. In this circumstance, the auditor would issue a: A) qualified opinion B) adverse opinion C) unmodified opinion with no additional paragraphs D) unmodified opinion with an appropriate emphasis-of-matter paragraph 9. Management of the company decides to not correct a misstatement of its financial statements, but wants the auditor to issue the audit report. The misstatement is material, but is not so pervasive or material as to cause the overall fairness of the financial statements to be in question. What type of opinion would the auditor most likely issue? A) A qualified opinion because of a departure from generally accepted accounting principles B) A qualified opinion because of the inability of the auditor to audit the financial statement assertion affected by the misstatement C) An unmodified opinion with an other matter paragraph describing the departure from generally accepted accounting principles D) An adverse opinion because the misstatement is material 10. A CPA who is a member of an audit team is permitted to subordinate his or her professional judgment to that of the audit partner in charge of the audit. A) True B) False 11. Which of the following is true about the concept of "independence in appearance?" A) It has the same meaning as the concept of "independence in mind." B) It requires the auditor to avoid circumstances that would cause someone to doubt his or her independence. C) It requires the auditor to have an independent mental attitude and to be intellectually honest. D) It requires that the auditor be without bias with regard to the client, to be impartial. 12. After a company was accused of violating certain regulatory requirements, the company's independent auditor offered to try to convince the regulatory agency that there was no violation. According to the AICPA Independence Framework, would this threaten the auditor's independence and what is the nature of the threat? A) Yes, the threat is adverse interest B) Yes, the threat is undue influence C) Yes, the threat is advocacy D) No, provided that the auditor is polite and respectful to the regulatory agency personnel