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AICPA auditing standards provide uniform wording for the auditor s report. ( a ) Explain eight distinct parts included in the auditor s standard unmodified

AICPA auditing standards provide uniform wording for the auditors report.
(a) Explain eight distinct parts included in the auditors standard unmodified opinion audit
report.
(b) The following is a portion of the basis for adverse opinion paragraph for Wallace
Corporations financial statements ending on December 31,2019. Prepare the opinion paragraph
for the audit report.
The company has excluded from property and debt in the accompanying balance sheet certain
lease obligations that, in our opinion, should be capitalized in order to conform with generally
accepted accounting principles. If these lease obligations were capitalized, property would be
increased by $14,500,000, long-term debt by $13,200,000, and retained earnings by $1,300,000
as of December 31,2019, and net income and earnings per share would be increased by
$1,300,000 and $2.25, respectively, for the year then ended.
(c) The following is the basis for qualified opinion paragraph for Fast Times Corporations
financial statements ending on September 30,2019. Prepare the opinion paragraph for the audit
report.
We were unable to obtain audited financial statements supporting the company's investment in a
foreign affiliate stated at $1,040,000, or its equity in earnings of that affiliate of $501,000, which
is included in net income, as described in Note 14 to the financial statements. Because of the
nature of the company's records, we were unable to satisfy ourselves as to the carrying value of
the investment or the equity in its earnings by means of other auditing procedures

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