Pitts Company has experienced significant financial difficulty. Current liabilities exceed current assets by $$1$ million, cash has decreased to $$10,000,$ the interest on the long$-$term debt has not been paid, and a customer has brought a lawsuit against Pitts for $$500,000$ on a product liability claim. Significant questions concerning the going$-$concern status of the company exist. The lawsuit and information about the going$-$concern status have been appropriately described in footnote $3$ to the financial statements, along with Pitts$$ acknowledgment that substantial doubt exists about its ability to continue as a going concern.

Required:

Assuming that the audit team decides that an unmodified opinion instead of a disclaimer of opinion is appropriate in the circumstances, identify how various components of the standard report would be modified.

Assuming that the audit team decides the uncertainties are so serious that they do not wish to express an opinion on Pitts$$ financial statements, identify how various components of the standard report would be modified.