For each of the following situations, indicate the type of report that would be required as well as how various paragraphs/sections of the auditors' report would be modified in the audit of a nonissuer. Assume any amount in question is material on an overall basis (but not pervasive) unless otherwise noted. 1. The entity is subject to a going-concern uncertainty and has properly disclosed this uncertainty in its financial statements. 2. The entity has changed from an accounting principle in accordance with GAAP to an accounting principle not in accordance with GAAP. 3. The audit team encounters a material, but not pervasive, scope limitation; this limitation has not been imposed by the client. 4. The entity's financial statements are presented in accordance with GAAP. 5. The entity has changed from one accounting principle in accordance with GAAP to another principle in accordance with GAAP; this change has been properly reported by restating prior years' financial statements. 6. After accepting the engagement, the audit team determines that the firm is not independent. 7. The entity's financial statements contain a material and pervasive departure from GAAP. 8. The group auditors' opinion on group financial statements is based partially on the report of component auditors. 9. The entity presents summary financial statements along with its full set of financial statements. 10. The audit team was unable to observe ending inventories because of late appointment; this represented a material and pervasive limitation on the scope of their examination. Part 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Opinion Opinion Section Basis for Opinion Section Management's Responsibility for the Financial Statements Section Audits of the Financial Responsibilities for Statements Section Additional Section or Paragraph Other Report