etoeX Fall 2018 Chapter 18 AF 470 Consider the following statements: ething that has been appropriately I. An Other Matter paragraph .. refers to or disclosed in the financial statements" Il. The audit report is modified to five paragraphs as a r topic). the financial statement audit (Refer to Shared Report saother resented a. l is true; II is true b. I is true; Il is false c. I is false; Il is true d y is false; Il is falseSKiP Consider the following statements: I. Inconsistent application of accounting principles (i.e 2. a change in accounting principle, which the auditor agrees is acceptable) would result in a qualified a II. For a change in accounting principles that management does nop justify to the auditor, the auditor will ikely choose between an unqualified or a disclaimer of a. I is true; 11 is true b. I is true; Il is false C. I is false; Il is true d. I is false; II is false 3. Consider the following statements: 1. The failure of a client to include a Statement of Cash F lows will result in the issuance of a rthe cpA firmi not independent of the entity being audited, the CPA fim is equired toisue one-paragraph] disclaimer of opinion. a. I is true; 11 is true b. I is true; Il is false C. I is false; II is true d. I is false; II is false 4. In which of the following instances would an auditor most likely issue a standard unqualified opinion WITH an explanatory paragraph? a. Management disclosures are missing or inadequate. b. There is substantial doubt about the entity's ability to continue as a going-concern. Due to staffing issues, the audit report was issued later than in previous years d. There is an material deviation from GAAP related to capitalizing repairs. 5. Which pne of the following is an example of the contents of an opinion paragraph found in an audit report? a. "We have audited ...". "Nothing came to our attention.... The financial statements referred to above present fairly. An audit includes examining, on a test basi