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:

Cognitive Perspective

A psychological approach that focuses on how people think, understand, and know about the world, emphasizing mental processes.

Reasoning Processes

Are mental activities involved in evaluating arguments, solving problems, and making decisions.

Problem Solving

The process of identifying a challenge and finding a solution or way around it.

Developmental Psychologist

A psychologist focusing on how individuals grow and change throughout their lifespan, from infancy through old age.