\begin{tabular}{|l|l|l|l|} \hline 1 & \multicolumn{1}{|c|}{ Situation } & \begin{tabular}{c} Additional \\ Paragraph? \end{tabular} & Type of Paragraph \\ \hline 2 & \begin{tabular}{l} An auditor decides to present their report on \\ supplementary information in the auditor's report on the \\ fairness of the financial statements. \end{tabular} & Click to select & \\ \hline 3 & \begin{tabular}{l} The client appropriately changed from accounting for \\ their marketable securities using the equity method in \\ Year 4 to the cost method in Year 5. The effect has a \\ material effect on the financial statements, but is \\ adequately accounted for and disclosed. \end{tabular} & & \\ \hline 4 & \begin{tabular}{l} The financial statements are prepared in accordance \\ with the cash basis, which is a special purpose \\ framework. \end{tabular} & \\ \hline 5 & \begin{tabular}{l} The financial statements of the prior period were audited \\ by a predecessor auditor and the predecessor's audit \\ report is not presented. \end{tabular} & \\ \hline 6 & \begin{tabular}{l} The client decides in Year 5 to change the depreciable \\ life of equipment from 8 years to 5 years. \end{tabular} & \\ \hline \end{tabular} \begin{tabular}{c|l|l|l|} \hline 7 & \begin{tabular}{l} The auditor concludes that there is substantial doubt \\ about the client's ability to continue as a going concern \\ for a reasonable period of time. Substantial doubt has \\ been alleviated. \end{tabular} & \\ \hline 8 & \begin{tabular}{l} The auditor includes an alert in the audit report that \\ restricts the use of the auditor's report. \end{tabular} & \\ \hline 9 & \begin{tabular}{l} The client is engaged in litigation that is adequately \\ accrued for and disclosed in the financial statements. \end{tabular} & \\ \hline \end{tabular}