Complete problem below. List a represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications [if any] that would be necessary. Select as the best answer for each situation [items 1 to 6] the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all.
The paper should be 2-3 pages.
Problem:
Items 1 through 6 present various independent factual situations an auditor might encounter in conducting an audit. For each situation assume:
Assume:
Situations:
Required:
List A represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications (if any) that would be necessary. Select as the best answer for each situation (items 1 through 6) the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. (AICPA, adapted)
List A
List B
Types of Opinions
Report Modifications
A. An “except for” qualified opinion
H. Describe the circumstances in a explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs.
B. An unqualified opinion
I. Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs.
C. An adverse opinion
J. Describe the circumstances in an explanatory paragraph preceding the opResearch a case of first impression where the court establishes precedent
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