In which of the following sections of the "Independent Auditor's Report" for a non-issuer (private company) would the phrase "conducted our audit in accordance with auditing standards generally accepted in the U.S." appear?

• A. Introduction
• B. Management's Responsibility for the Financial Statements.
• C. Auditor's Responsibility
• D. Opinion

In which of the following sections of the "Independent Auditor's Report" for a non-issuer (private company) would the phrase "preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the U.S." appear?

• A. Introduction
• B. Management's Responsibility for the Financial Statements
• C. Auditor's Responsibility
• D. Opinion

A group auditor decides not to take responsibility for the work of another audit firm that audited a wholly-owned subsidiary of the principal (group) auditor's client. The total assets and revenues of the subsidiary represent 45% and 50% respectively, of the related consolidated totals. What type of report should the auditor issue?

• A. A qualified opinion.
• B. A disclaimer of opinion.
• C. An unmodified opinion.
• D. An adverse opinion.