The following choices are available:

1. Unqualified (unmodified) opinion without any modification.
2. Qualified opinion or adverse opinion with adjustment to opinion and basis for opinion sections of audit report.
3. Qualified opinion or disclaimer with adjustments to opinion and basis for opinion sections of audit report.
4. Unqualified (unmodified) opinion with modification(s) to the audit report.

For each of the following items, choose the best answer choice from items a through d above and place them on the blank space below. An answer choice can be selected once, more than once, or not at all.

1. The client has used fair market values to record property, plant, and equipment and has not used interperiod tax allocation. The client will not make any adjustments to the financial statements. Answer: _____
2. The auditor was engaged to audit a clients financial statements after the annual physical inventory count. The accounting records are not sufficiently reliable to enable the auditor to become satisfied as to year-end inventory balances. Answer: _____
3. Big City is required by GASB to present supplementary information outside the basic financial statements concerning the disclosure of pension information. Big Citys auditor determines that the supplementary information, which is not required to be a part of the basic financial statements, is omitted. Answer: _____
4. An auditor hires an actuary to assist in corroborating a clients complex pension calculations concerning accrued pension liabilities that account for 35% of the clients total liabilities. The actuarys findings are reasonably close to the clients calculations and support the financial statements. Answer: _____