The following questions concern audit reports other than unmodified opinion audit reports with standard wording. Choose the best response. 

a. As compared to an unmodified opinion, an opinion qualified due to a material departure from generally accepted accounting principles would 

(1) Include an extra paragraph in the opinion section. 

(2) Include a slight modification to the auditor’s responsibility section. 

(3) Include a slight modification to the introductory paragraph in the opinion section. 

(4) Indicate that, except for the problem noted, the financial statements are presented fairly 

b. An auditor who qualified an opinion because of an insufficiency of audit evidence should refer to the scope limitation in the 

c. An adverse opinion and a disclaimer of opinion 

(1) May be used interchangeably. 

(2) Both require modification of the opinion section. 

(3) Result in the auditor’s withdrawal from the engagement. 

(4) Indicate situations in which there are material GAAP departures.

Transcribed Image Text:

Auditor's Responsibility Note to the Financial Section Opinion Section Statements (1) Yes No Yes (2) No Yes No (3) Yes Yes No (4) Yes Yes Yes