For each of the six independent statements below, indicate

1. whether you agree or disagree. Once you have stated your position,
2. provide an explanation based on your understanding of Generally Accepted Auditing Standards (GAAS).

1. Auditors cannot give negative assurance in an audit report.
2. A clean opinion does not imply that the financial statement disclosures are reasonably adequate.
3. In the standard unmodified audit report, an auditor provides a "clean" audit opinion on the entire financial statements, including all of the footnote disclosures
4. The words "except for" should be used in the opinion paragraph only if there is a reservation resulting in a disclaimer of opinion or a scope qualification.
5. When there is material uncertainty about an auditee's ability to continue as a going concern, and the issue has been fully disclosed in the notes to the financial statements, the auditor should issue a qualified report with a paragraph drawing attention to the going concern issue.
6. A scope limitation imposed by a client affecting the audit in a material, but not pervasive way, would result in a disclaimer of opinion.