The following questions relate to circumstances resulting in departure from the auditor's standard report. Select the best response. a Which of the following will not result in modification of the auditor's report due to a scope limitation? 

1. Restrictions imposed by the client.

2. Reliance placed on the report of another auditor.

3. Inability to obtain sufficient competent evidential matter.

4. Inadequacy in the accounting records.

b. A lawyer limits a response concerning a litigated claim because the lawyer is unable to determine the likelihood of an unfavorable outcome. Which type of opinion should the auditor express if the litigation is adequately disclosed and the range of potential loss is material in relation to the client's financial statements considered as a whole?

1. Adverse.

2. Unqualified with explanatory language.

3 Qualified.

4 Unqualified.

c. When restrictions that significantly limit the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinions?

1. Qualified.

2. Disclaimer.

3. Adverse.

4. Unqualified.

d. Higgins Corporation is required to but does not wish to prepare and issue a statement of cash flows along with its other basic financial statements. In these circumstances, the independent auditor's report on the Higgins financial statements should include a (an)

1. Unqualified opinion with a statement of cash flows prepared by the auditor and included as part of the auditor's report.

2. Qualified opinion with an explanatory paragraph explaining that the company declined to present the required statement.

3. Adverse opinion stating that the financial statements, taken as a whole, are not fairly presented because of the omission of the required statement.

4. Disclaimer of opinion with a separate explanatory paragraph stating why the company declined to present the required statement. e An auditor is confronted with an exception considered sufficiently material as to warrant some deviation from the standard unqualified auditor's report. If the exception relates to a departure from generally accepted accounting principles, the auditor must decide between expressing a (an) 

1. Qualified opinion and an unqualified opinion. 

2. Adverse opinion and a qualified opinion. 

3. Adverse opinion and a disclaimer of opinion. 

4. Disclaimer of opinion and a qualified opinion.