The following is a completed summary of identified errors. Assuming overall materiality was set at $50,000, what type of audit opinion would be most appropriate? Assume the errors are not pervasive. ASSETS 58,000 LIABILITIES (6,000) INCOME 64,000 EQUITY 64,000 TOTALS A. Unmodified (unqualified) opinion B. Modified - Qualified opinion due to a scope limitation C. Modified - Disclaimer of opinion D. Modified - Qualified opinion due to a departure from GAAP E. Modified - Adverse opinion The correct response is During the unpaid invoice testing, the auditor found invoices for various utilities (power water, telephone, etc.) relating to the last month of the fiscal year. These invoices totaled $2.350 and they were not entered into the accounting records. ASSETS INCOME (2,350) EQUITY (2,350) A. (2,350) B. c. LIABILITIES 2,350 (2,350) (2,350) 2,350 (2,350) 2,350 D. 2,350 (2,350) (2,350) E. (2,350) (2,350) The correct response is The balance in the prepaid insurance account of $12,000 representing 12 months of insurance premiums, has not been drawn down to represent six months that have passed Since these premiums were paid. LIABILITIES EQUITY A. B. C. D. E. ASSETS 6,000 6,000 6,000 (6,000) 12,000 INCOME 6,000 6,000 (6,000) 6,000 12,000 6,000 (6,000) 12,000 The correct response is The balance in the prepaid insurance account of $12,000 representing 12 months of insurance premiums, has not been drawn down to represent six months that have passed Since these premiums were paid. LIABILITIES EQUITY A. B. C. D. E. ASSETS 6,000 6,000 6,000 (6,000) 12,000 INCOME 6,000 6,000 (6,000) 6,000 12,000 6,000 (6,000) 12,000 The correct response is