What kind of opinion should the auditors express in each separate case?.

During the year, the entity changed its method of accounting for inventories from FIFO to LIFO and has disclosed this material change in the footnotes to the financial statements and accounted for the change properly. However, the auditors do not agree with the rationale for the change and believe that it was made to report a higher level of earnings.

Answer 1 Choose... Evidence gathered during the audit examination and inquiry of the clients management revealed substantial doubt about the clients ability to continue in existence. The auditors believe that the client has appropriately disclosed the going-concern uncertainties in its financial statements and footnotes.

Answer 2 Choose... Subsequent to accepting the audit engagement, the auditors determined that they are not independent with respect to the client because of a financial interest in the client held by a newly-admitted partner to the audit firm.

Answer 3 Choose... Auditors have identified an immaterial departure from GAAP in their examination, but the entity has not adjusted its financial statements for this departure or disclosed this departure in its financial statements or related disclosures.

Answer 4 Choose...

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