What are the three conditions that require a departure from an unmodified opinion audit report? Give an example of each.

Begin by selecting the three conditions requiring a departure from an unmodified opinion audit report. Then select an example of each, referencing the example by the corresponding letter in the list of possible examples.

Example

a.

The auditor also provides tax services for the client's business.

b.

The auditor is friends with someone on the board of directors of the client's business.

c.

The auditor owns stock in the client's business.

d.

The client insists on using replacement costs for fixed assets.

e.

The client values fixed assets at historical cost.

f.

The client values inventory at historical cost.

g.

The client will not permit the auditor to confirm material receivables.

Conditions requiring a departure from an unmodified opinion audit report

Example

The auditor has not been paid- a,b,c,d,e,f,g

The autitor is not independent

The financial statements have not been prepared in accordance with GAAP

The other auditors are independent

The scope of the audit has been restricted

There is a lack of consistent application of GAAP