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Unformatted text preview: report. The opinion on the 2007 financial statements would not be adverse because, while the misstatement is material, it is not highly material or pervasive 18-22 A. Unqualified opinion with added explanatory B. The auditor should issue a qualified audit report because management has not complied with GAAP C. Adverse opinion D. If the auditor is satisfied that the controller's motivation for not sending confirmation is appropriate, the auditor should issue a qualified audit report for a scope limitation due to a lack of evidence on the accounts receivable balance. If the question had indicated that the accounts receivable balance was highly material, a disclaimer of opinion would have been the appropriate response. E. Unqualified report F. Qualifed or Adverse audit report G. Unqualified opinion with added explanatory 18-10 B 18-11 C 18-12 A 18-13 B 18-14 A 18-15 C 18-16 C 18-17 B 18-18 B 18-19 B 18-20 C 18-21 C...
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- Spring '08