Unqualified Audit Reports for Each of the Following Situations,define the Type

question 79

Essay

Unqualified audit reports For each of the following situations,define the type of problem encountered and provide an explanation as to the type of report which was issued.
$\begin{array}{ll} \underline { \text { Situation } } & \underline { \text {Report Issued } } \\ \text {The auditor is unable to confirm three } &\text { Unqualified/Unmodified } \\ \text {customer accounts receivable. } & \\ \text { The client forgot to accrue a contingent liability. } &\text { Unqualified/Unmodified } \\ \text { The auditor believes there is substantial doubt} & \\ \text { regarding the client's ability to continue as a } &\text { Unqualified with Explanatory Paragraph } \\ \text { going concern. } & \\ \text {The client properly adopts a new accounting } &\text { Unqualified with Explanatory Paragraph} \\ \text { principle promulgated by the FASB. } & \\\end{array}$

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Definitions:

Protein

Large, complex molecules essential for body structure, function, and regulation of tissues and organs.

Hydroxyl Group

A functional group consisting of an oxygen atom bonded to a hydrogen atom (-OH), common in alcohols and many other organic compounds.

Methane

A greenhouse gas consisting of one carbon atom and four hydrogen atoms, CH4, contributing to global warming.

Methanol

A simple alcohol with the formula CH3OH, known for its use as a solvent, antifreeze, fuel, and as a precursor to other chemicals.