Consider the following statements: 1. For an audit of a non-public company, on the Income Statement Sales are reported lower than the previous year. The auditor believes the number is appropriate. In the Management Discussion and Analysis section of the company's annual report the chief Financial Officer states "sales have never been better." This would be addressed in an Other Matter paragraph. II. The new PCAOB audit report includes a section involving Critical Audit Matters. a. I is true; il is true b. I is true; Il is false C. I is false; Il is true d. I is false; Il is false 2. Consider the following statements: 1. Inconsistent application of accounting principles (i.e. a change in accounting principle, which the auditor agrees is acceptable) would result in an Qualified audit opinion. II. For a change in accounting principles that management does NOT justify to the auditor, the auditor will likely issue a Qualified or Adverse of an audit opinion. a. I is true; il is true b. I is true; Il is false C. I is false; Il is true d. I is false; Il is false 3. Consider the following statements: 1. The failure of a client to include a statement of Cash Flows will result in the issuance of a qualified opinion by the auditor. II. If the CPA firm is not independent of the entity being audited, the CPA firm is required to issue a [one-paragraph] disclaimer of opinion. a. I is true; il is true b. I is true; Il is false c. I is false; Il is true d. I is false; Il is false