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Indicate with a check mark the efflects of each circumstance by using the following code letters I Introductory MR Management's responsibility AR Auditor's responsibility EB
Indicate with a check mark the efflects of each circumstance by using the following code letters I Introductory MR Management's responsibility AR Auditor's responsibility EB Explanatory before opinion O Opinion EA Explanatory after opinion REQUIRED: Indicat U Unmodified Q Qualified A Adverse D Disclaimer When more than one opinion may be expressed, check each of the opinions. Mark the paragraph if it would be ed to the standard report. Assume all items are material unless otherwise noted. (26 points Opinion Paragraph 1. Doubt about the entity's ability to continue as a going concern is fully disclosed in the notes to the financial statements. (Serious but not severe) 2. Reference is made to another auditor, who audited part of the financial statements. 3. The auditor has an extremely material client-imposed scope limitation. 4. The financial statements are not prepared in conformity with GAAP; there are no unusual circumstances requiring the departure. T-T-T The auditor wishes to emphasize the acquisition of newly acquired companies in a buy-out situation. 5. A predecessor auditor's unmodified opinion for a prior year's report on comparative financial statements is referred to in the current report. 6. A scope limitation prevents the auditor from obtaining sufficient competent evidence concerning one material financial statement assertion. 7. The company changed its method of calculating depreciation and the change was made in conformity with GAAP 8. 9. A continuing auditor updates a qualified opinion to an unmodified opinion in the current year's report on comparative financial statements. 10. Required supplementary information is omitted from the financial statements. (not required by GAAP) 11. The company failed to capitalize lease assets and obligations. (material and pervasive)
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