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The five types of reports that may be issued by auditors include: (A) An unmodified opinion, standard form. (B) An unmodified opinion with an additional
The five types of reports that may be issued by auditors include: (A) An unmodified opinion, standard form. (B) An unmodified opinion with an additional paragraph (e.g., emphasis of a matter paragraph). (C) A qualified opinion (O) An adverse opinion. (E) A disclaimer opinion. For each of the following situations indicate the letter(s) that corresponds to the appropriate type of auditors' report, both when the situation is "material" and when it is "material and pervasive. Select answer B only when the professional standards require such a report e. The scope of the auditors' examination is restricted and the auditor is able effectively to apply other procedures The financial statements reflect a change from one generally accounting principles to another generally accepted accounting principle. The auditor does not consider the new principle preferable to the previous one Inventory is valued at sales prices which the auditors find, although reasonable, different from the lower of cost or market 9 valuation system Substanial doubt about the client's ability to continue as a going concern exist. This substantial doubt is properly disclosed in the financial statement notes The auditor will not issue a disclaimer of opinion Substansal doubt about the client's ability to continue as a going concern exist This substantial doubt is not properly disclosed in the financial statement notes The auditor will not issue a disclaimer of opinion The company changed the lives of some of its fixed assets-the auditor finds the new lives reasonable
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