For each of the TEN (10) Multiple Choice questions below, select the answer that BEST fits the Circumstances, Type of Opinion and Report Alterations and Paragraph. You MUST HIGHLIGHT THE ANSWER IN YELLOW. Upon completion, please save the file by ADDING your name at the end of the file name. You should submit the file within 45 minutes to the ASSESSMENT in Black-Board where you Downloaded the File. You may save a copy of your submission. Please do not share this with any other student. Circumstance Modification (RA/PM) Type of Opinion Report Alterations & Paragraph GC = Going Concern Paragraph Added CON = Consistency Added EMPH Auditor Discretionary Emphasis of a Matter Paragraph Added GROUP Group Audit Paragraph Added GAAP Departure from GAAP CHGACCPRINC Change in Accounting Principle CHGACCEST Change in Accounting Estimate SCOPE=Scope Limitation COMP=Comparative Financial Statement NONE= No Circumstances U=Unmodified M = Modified D= Disclaimer A= Adverse EOM Emphasis of a Matter OM Other Matter Paragraph BFM Basis for Modification OTHER Other Alterations, but NO NO = No Alteration(s) 1. A client bills customers and recognizes revenues before shipment of goods to the customer. Which of the circumstance, type of opinion, and RA/RP are appropriate? A. GAAP, MOD or ADVERSE, BFM B. GAAP, U, NO C. NONE, U, NO D. None of the above 2. Your client increased the allowance for uncollectible accounts receivable by a material amount that you consider to be excessive. The increase affects income before tax and accounts receivable (net). Cash flow is not affected. A. GAAP, MOD or ADVERSE, BFM B. GAAP, U, NO C. NONE, U, NO D. CHNGEST, MOD, BFM 3. The audit disclosed a material overstatement in the client's inventory, which the client failed to recognize with an appropriate adjusting entry. Which of the circumstances, type of opinion and RA/PM are appropriate? A. GAAP, MOD or ADVERSE, BFM B. GAAP, U, NO C. NONE, U, NO D. None of the above. 4. Your client failed to reclassify the current portion of long-term debt as a current liability. The amount is material, but the financial statements are not misleading. Which of the circumstances, type of opinion and RA/PM are appropriate? A. GMP, MOD or ADVERSE, BFM B. GMP, MOD, NO C. NONE, U, NO D. GMP, MOD, BFM 5. In auditing the material long-term investments account of a new client, you are unable to obtain audited financial statements of for the investment located in a foreign country. You conclude that sufficient appropriate audit evidence regarding the investment cannot be obtained. Which of the circumstances, type of opinion and RA/PM are appropriate? A. SCOPE, UNMOD, BFM B. SCOPE, M (qualified) or D, BFM C. SCOPE, D only, NO D. GAAP, M (qualified) only, BFM 6. A client's financial statements follow GAAP, but you wish to emphasize a significant related party transaction in the audit report. Which of the circumstances, type of opinion and RA/PM are appropriate? A. EMPH, U, OM B. EMPH, M, OM C. EMPH, U, EOM D. NONE, M, EOM 7. A client has departed from GAAP for what you consider to be justified reasons, as following GAAP would result in misleading financial statements. Which of the circumstances, type of opinion and RA/PM are appropriate? A. GAAP or EMPH, U, OM B. GAAP or EMPH, M, OM C. GAAP or EMPH, M, EOM D. GAAP or EMPH, U, EOM