Transactions due to an inadequacy in the entitys

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transactions due to an inadequacy in the entity's accounting records. The auditor would choosebetween issuing a(an):a. Qualified opinion and an unmodified opinion with an emphasis-of-matter paragraph.b.Disclaimer of opinion and a qualified opinion.c.Unqualified opinion with an emphasis-of-matter paragraph and an adverse opinion.
d.Adverse opinion and a disclaimer of opinion.ExplanationChoice "b" is correct. Client-imposed restrictions of scope such as those caused by inadequaterecords would cause the auditor to choose between issuing a disclaimer of opinion and aqualified opinion.Choice "a" is incorrect. An unmodified opinion would only be justified if the transactions inquestion werenotmaterial, but in such situations, no emphasis-of-matter paragraph would berequired.Choices "c" and "d" are incorrect. An adverse opinion pertains to GAAP and wouldnotbe usedfor reporting restrictions of scope.Under U.S. GAAS, in which of the following situations would a group engagement partner leastlikely make reference to component auditor who audited a subsidiary of the entity?

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Term
Spring
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Auditor s report

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