Shown below are a number of situations that may be encountered during the audit examination.For each,indicate how the auditors' standard (unmodified)report would be modified (each reporting situation may result in more than one modification to the auditors' standard (unmodified)report).
A. Modification to introductory paragraph.
B. Modification to Management's Responsibility section.
C. Modification to Auditor's Responsibility section.
D. Modification to opinion paragraph.
E. Additional paragraph added to report.
F. No modifications to the standard (unmodified) report are necessary.
___ 1. Departure from GAAP that does not materially affect the financial statements.
___ 2. Inability of auditors to confirm accounts receivable with customers; while the scope limitation is material, the auditors still believe an opinion may be expressed on the entity's financial statements.
___ 3. Group auditors decide to refer to the work of component auditors in their report.
___ 4. Entity has changed from FIFO to LIFO accounting for inventories.
___ 5. Auditors wish to highlight an event that occurred following the date of the financial statements.
___ 6. Departure from GAAP that has a material, but not pervasive, effect on the financial statements.
___ 7. Group auditors decide to assume full responsibility for the work of component auditors and not refer to component auditors' work in their report.
___ 8. Scope limitation that precludes auditors from expressing an opinion.
___ 9. Auditors would like to disclose potential going-concern uncertainties in their report (these uncertainties have been appropriately disclosed in the entity's financial statements and related disclosures).
___ 10. Departure from GAAP that has a material and pervasive effect on the financial statements.

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The Answer of Shown below are a number of situations that may be encountered during the audit examination.For each,indicate how the auditors' standard (unmodified)report would be modified (each reporting situation may result in more than one modification to the auditors' standard (unmodified)report).
A. Modification to introductory paragraph.
B. Modification to Management's Responsibility section.
C. Modification to Auditor's Responsibility section.
D. Modification to opinion paragraph.
E. Additional paragraph added to report.
F. No modifications to the standard (unmodified) report are necessary.
___ 1. Departure from GAAP that does not materially affect the financial statements.
___ 2. Inability of auditors to confirm accounts receivable with customers; while the scope limitation is material, the auditors still believe an opinion may be expressed on the entity's financial statements.
___ 3. Group auditors decide to refer to the work of component auditors in their report.
___ 4. Entity has changed from FIFO to LIFO accounting for inventories.
___ 5. Auditors wish to highlight an event that occurred following the date of the financial statements.
___ 6. Departure from GAAP that has a material, but not pervasive, effect on the financial statements.
___ 7. Group auditors decide to assume full responsibility for the work of component auditors and not refer to component auditors' work in their report.
___ 8. Scope limitation that precludes auditors from expressing an opinion.
___ 9. Auditors would like to disclose potential going-concern uncertainties in their report (these uncertainties have been appropriately disclosed in the entity's financial statements and related disclosures).
___ 10. Departure from GAAP that has a material and pervasive effect on the financial statements.

Shown Below Are a Number of Situations That May Be