[ Select] Unmodified audit opinion Adverse audit opinion id Qualified audit opinion Disclaimer of opinion nent to the audit engagement thi I Select] Modify the opinion and auditor's responsibilities paragraphs. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph Modify the opinion, basis for opinion, and auditor's responsibilities paragraphs. No modification necessary Modify the opinion and basis for opinion paragraphs. Describe the circumstances in an explanatory paragraph following the Basis for Opinien pa Describe the circumstances in an explanatory paragraph preceding the opinion paragraph OLUL Acompany's customer sued it for damages. Management believes that a material loss probably will occur when pending litigation is resolved. Management is unable to make a reasonable estimate of the amount of he range of the potential loss. The client fully disclosed the situation in the notes to the financial statements, v nd no accrual was made. Unmodified audit opinion [Select] 2. Due to losses and adverse key financial ratios, an auditor has substantial doubt about the client's ability continue as a going concern for a reasonable period of time. The client has adequately disclosed its finar difficulties in a note to its financial statements, which do not include any adjustments that might result a the outcome of this uncertainty. [Select ] [ Select ] 3. Because of a late appointment to the audit engagement, the auditor is unable to observe the company's end physical inventory. Because the company's inventory accounting records are not complete, the audi are unable to perform other substantive procedures and they are not satisfied with the fairness of the er inventory balance. [ Select] [ Select] 4. A client has changed its estimate of likely doubtful accounts from 2% of credit sales to 3%. The audi believes the change to be reasonable. [Select ] ] [ Select]