1. During the current year, the client changed its depreciation method from the straight-line method to the declining-balance method.
2. During the current year, the client changed its estimate of the buildings salvage value from $100,000 to $8,000.
3. During the current year, the client changed its method of credit loss expense recognition from the allowance method, income statement approach, to the direct write-off method.
4. During the current year, the client discovered that last years inventory physical count was incorrect. The client properly corrected the material misstatement in the current years financial statements.
5. The client could not refinance its current liabilities, and the auditor concludes that a substantial doubt exists about the clients ability to continue as a going concern for a reasonable period of time. The clients financial statements adequately disclose its financial difficulties.
6. The auditor discovered a material overstatement of revenues; however, the client failed to correct the misstatement.
7. The client changed the method for accounting for an expense because of a requirement in a new standard issued by the FASB.
8. The auditor employed the use of a specialist to help gather evidence relating to pension costs.

Pick one of the groupings

Qualified or adverse

Unmodified

Unmodified with an additional paragraph