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

Auditors have identified an material 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 1Choose...Issue qualify both the scope and opinion paragraphs.Issue a standard unmodified report.Issue qualify the opinion paragraph.Issue disclaim an opinion.Issue an unmodified opinion with modified wordingIssue an adverse opinion.Issue an unmodified opinion with an explanatory paragraph.
Evidence gathered during the audit examination and inquiry of the clients management revealed that is no doubt about the clients ability to continue in existence. The auditors believe that the client has appropriately disclosed the going-concern certainties in its financial statements and footnotes.	Answer 2Choose...Issue qualify both the scope and opinion paragraphs.Issue a standard unmodified report.Issue qualify the opinion paragraph.Issue disclaim an opinion.Issue an unmodified opinion with modified wordingIssue an adverse opinion.Issue an unmodified opinion with an explanatory paragraph.
One of a CPA firms clients is RealCo, a real estate holding company. Assume that RealCo experienced a significant decline in the value of its investment properties during the past year because of a downturn in the economy and has appropriately recognized that decline in market value under GAAP. Stanford wishes to emphasize the decline in the economy and its impact on RealCos financial position and results of operations for 2014 in its audit report.	Answer 3Choose...Issue qualify both the scope and opinion paragraphs.Issue a standard unmodified report.Issue qualify the opinion paragraph.Issue disclaim an opinion.Issue an unmodified opinion with modified wordingIssue an adverse opinion.Issue an unmodified opinion with an explanatory paragraph.
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 agree with the rationale for the change and believe that it was made to report a actual level of earnings.