users place in the financial statements onfidence that intended users place in the financial statements 34) An emphasis-of-matter paragraph refers to when an auditor A) issues an unmodified opinion but may include an additional paragraph in the report to draw attention to important information B) issues a disclaimer of opinion due to a scope limitation C) makes inquiries of the prior auditor relating to prior audit opinions issues D) makes inquiries of the legal auditor relating to prior audit opinions issues 35) An unmodified auditor's report is A) an indication that a firm is financially successful B) an indicator that the firm's stock price may be about to drop C) not an indication the company is successful financially, but rather an indication the company has followed accounting standards as dictated by the applicable financial reporting framework D) an indication the company is successful financially, but not an indication the company has followed accounting standards as dictated by the applicable financial reporting framework 36) Showing comparative financial statements helps users A) to calculate a definite future stock price B) to analyze the company's financial condition and profitability C) spot potential problems in the most recent years note disclosures D) understand the difference between basic and diluted earnings per share 37) A component auditor is typically A) another audit partner in the same office B) a different partner at a different office of the same firm C) a different accounting firm that audits a component or subsidiary of the parent company D) a different accounting firm that audits a component of the subsidiary company 6