For each of the following situations indicate the appropriate type of auditors' report, both when the situation is "material" and when it is "material and pervasive." Select An unmodified opinion with an additional paragraph (e.g., emphasis of a matter paragraph). only when the professional standards require such a report.

Return to question 21 For each of the following situations indicate the appropriate type of auditors' report, both when the situation is "material" and when it is "material and pervasive." Select "An unmodified opinion with an additional paragraph (e.g., emphasis of a matter paragraph)." only when the professional standards require such a report. 0.6 points Answer is complete but not entirely correct. Situation Material Material and Pervasive 1 The financial statements reflect a change from one generally accounting principles to another generally accepted accounting principle. The auditor considers the new principle preferable to the previous one An unmodified opinion, standard form. X A disclaimer opinion. 2 The company changed the lives of some of its fixed assets-the auditor finds the new lives reasonable. An unmodified opinion, standard form An unmodified opinion, standard form 3 The auditors wish to emphasize in the report a subsequent event described in the notes to the financial statements. An unmodified opinion with an additional paragraph (e.g. emphasis of a matter paragraph). An unmodified opinion with an additional paragraph (e.g. emphasis of a matter paragraph). 4 Substantial doubt about the client's ability to continue as a going concern exist. This substantial doubt is not properly disclosed in the financial statement notes. The auditor will not issue a disclaimer of opinion An unmodified opinion, standard form. An unmodified opinion, standard form 5 The scope of the auditor's examination is restricted and the auditor is not able to effectively apply other procedures. A qualified opinion. A disclaimer opinion