Identify the type of audit report that you believe should be given.

Charlie company has a bad couple of years. Its major product, a package of software including word processing and spreadsheet applications, is suffering from competition with Microsoft. The company has had losses and negative operating cash flow for two years now. You discuss the situation with management and learn that management has plans to offer innovative new products. Management is optimistic about its new products. If the new products do well, the company will be profitable again. If they do not do well the company only has enough financial resources to keep going for another two years.

a) standard unmodified b) unmodified opinion with emphasis of matter explanatory paragraph or non-standard wording c) disclaimer or opinion d) qualified opinion due to non-conformity with gaap e) qualified opinion due to scope restriction f) adverse opinion