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

During your audit of Raceway.com, Inc., you conclude that there is a possibility that inventory is materially overstated. The client refuses to allow you to expand the scope of your audit sufficiently to verify whether the balance is actually misstated.	Answer 1Choose...Issue unmodified opinion with an explanatory paragraph.Issue disclaim an opinion.Issue qualify the opinion paragraph.Issue a standard unmodified report.Issue an adverse opinion.Issue an unmodified opinion with modified wordingIssue qualify both the scope and opinion paragraphs.
Auto Delivery Company has a fleet of several delivery trucks. In the past, Auto Delivery had followed the policy of purchasing all equipment. In the current year, they decided to lease the trucks. The method of accounting for the trucks is therefore changed to lease capitalization. This change in policy is fully disclosed in footnotes.	Answer 2Choose...Issue unmodified opinion with an explanatory paragraph.Issue disclaim an opinion.Issue qualify the opinion paragraph.Issue a standard unmodified report.Issue an adverse opinion.Issue an unmodified opinion with modified wordingIssue qualify both the scope and opinion paragraphs.
You complete the audit of Munich Department Store, and in your opinion, the finan- cial statements are fairly presented. On the last day of the audit, you discover that one of your supervisors assigned to the audit has a material investment in Munich.	Answer 3Choose...Issue unmodified opinion with an explanatory paragraph.Issue disclaim an opinion.Issue qualify the opinion paragraph.Issue a standard unmodified report.Issue an adverse opinion.Issue an unmodified opinion with modified wordingIssue qualify both the scope and opinion paragraphs.
Your client, Harrison Automotive, has changed from straight-line to sum-of-the- years digits depreciation. The effect on this years income is immaterial, but the effect in future years may be highly material. The change is not disclosed in the footnotes.