The Following Is the Introductory Paragraph, and the Basis for Qualified

question 98

Essay

The following is the introductory paragraph, and the Basis for Qualified Opinion paragraph for Fast Times Corporation, a nonpublic company.
Independent Auditor's Report
To the shareholders and the board of directors of Fast Times Corporation
We have audited the accompanying balance sheet of Fast Times Corporation as of September 30, 2019, and the related statements of income, retained earnings, and cash flows for the year then ended, and the related notes to the financial statements.
Basis for Qualified Opinion
We were unable to obtain audited financial statements supporting the company's investment in a foreign affiliate stated at $1,040,000, or its equity in earnings of that affiliate of $501,000, which is included in net income, as described in Note 14 to the financial statements. Because of the nature of the company's records, we were unable to satisfy ourselves as to the carrying value of the investment or the equity in its earnings by means of other auditing procedures.
Required:
Prepare the opinion paragraph for the above audit report. Do not date or sign the report.

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Definitions:

Economic Guidepost

Principles or indicators used to inform economic decisions and policies, guiding stakeholders through the complexities of economic systems.

Legislator

An individual who has the power to make, change, or repeal laws within a government.

Secondary Effects

Unintended consequences or outcomes that arise from a primary action or decision.

Unintended Consequences

Outcomes that are not the ones foreseen and intended by a purposeful action, often contrary to the original intentions.