When a qualified opinion results from a limitation on the scope of the audit , the situation should be described in an explanatory paragraph Question 14 The standard report issued by an accountant after reviewing the financial statements of a nonpublic entity states that Question 15 Which of the following phrases would an auditor most likely include in the auditor ' s report when expressing a qualified opinion because of inadequate disclosure ? Question 16 A client has capitalizable leases but refuses to capitalize them in the financial statements . Which of the following reporting options does an auditor have if the amounts pervasively distort the financial statements ? Question 17 Wolf is auditing an entity ' s compliance with requirements governing a major federal financial assistance program in accordance with Government Auditing Standards . Wolf detected noncompliance with requirements that have a material effect on the program . Wolf ' s report on compliance should express Question 18 General Retailing , a nonissuer , has asked Ford , CPA , to compile its financial statements that omit substantially all disclosures required by GAAP . Ford may comply with General ' s request provided the omission is clearly indicated in Ford ' s report and the Question 19 Moore , CPA , has been asked to issue a review report on the balance sheet of Dover Co ., a nonpublic entity . Moore will not be reporting on Dover ' s statements of income , retained earnings , and cash flows . Moore may issue the review report provided the Question 20 Reporting standards for financial audits under Government Auditing Standards ( the Yellow Book ) differ from reporting under generally accepted auditing standards in that Government Auditing Standards require the auditor to
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