Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 7

Departures from GAAP. For each of the following departures from GAAP, indicate the type of opinion that the auditors would issue as well as any modifications that would be made to the standard (unmodified) report.
a. A departure that had an immaterial effect on the financial statements.
b. A departure that had a material effect on the financial statements (this effect was not pervasive and impacted only one account).
c. A departure that had a material effect on the financial statements and was pervasive (impacted a number of accounts on both the balance sheet and income statement).