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For each of the following brief scenarios, assume that you are the CPA reporting on the client's financial statements. Match the type of opinion that

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For each of the following brief scenarios, assume that you are the CPA reporting on the client's financial statements. Match the type of opinion that best fits the circumstance. Note slight differences, such as when a misstatement is pervasive or the fact pattern indicates pervasiveness. Do not read more into the circumstance than what is presented. Unless stated otherwise, assume that the information presented is material to the financial statements Your client has declined to depreciate its assets this year because the depreciation expense would reduce the year's small income to a loss and the dollar amount is pervasive. A client's financial statements follow GAAP, but you wish to emphasize that the client is a subsidiary of Webster Corporation in the audit report. In auditing the long term investments account of a new client, you are unable to obtain audited financial statements for the investee located in a foreign country You conclude that sufficient appropriate audit evidence regarding this investment cannot be obtained and the investment value is pervasive to the total assets Due to a very major lawsult, you have substantial doubt about a client's ability to eontinue as a growing concern for a reasonable period of time. The financials statement disclosure related to this lawsuit are adequate You decide not to tale responsibility for the work of the component auditors who audited a 70% owned subsidiary and issued an unmodified opinion. The total assets and revenues of the subsidiary are 5% and 896, respectively, of the total assets and revenues of the entity being audited A ADVERSE B UNQUALIFIED PLUS ADDITIONAL LANGUAGE You decide to tale responsibility for the work of the component auditors who audited a 70%% owned subsidiary and issued an unmodified opinion. The total assets and revenues of the subsidiary are 5% and 0, respectively, of the total assets and revenues of the entity being audited C DISCLAIMER D UNQUALIFIED A company has changed the remaining life of a significant asset from 12 to 10 years. You believe that the change is reasonable A company changes from FIPO to LIFO for inventory valuation and you concur with the change. The change has an immaterial effect on the entity's financial statements this year, but it is expected to hae a material effect in the future. Your client is a defendant in a major lawsuit. It is probably that the company will experience a material loss due to the lawsuit, although it is impossible to calculate the likely amount. The financial statements include a note adequately describing the matter You decide that a standard report is inappropriate

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