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3. Norden Company is being sued. It is unable to estimate at all the range of its possible loss, but knows that it could be highly material. The auditor is the CPA firm of Connor and Connors. The auditor is satisfied that it has appropriate evidence on the lawsuit and that the footnote disclosure given is appropriate. The auditor should give a. An unqualified/unmodified opinion b. A qualified opinion c. An adverse opinion d. A disclaimer 4. Sometimes, depending on the pervasiveness of materiality, the auditor has to choose between an adverse opinion and a qualified opinion. Which of the following situations requires a choice between adverse opinion and qualified opinion (i.e. only these 2 opinions are possible choices)? a. Departure from GAAP b. The auditor is unable to obtain sufficient appropriate audit evidence c. The company has a going concern issue d. There is a lack of consistency 5. Suzanne Martley was engaged to audit the financial statements of Danielle Shames Company after its However, Suzanne fiscal year had already ended. Suzanne Martley did not observe the inventory count. Martley applied appropriate alternative procedures. Thus, Suzanne Martley believed that Inventory was fairly stated. Danielle Shames Company's audit report most likely contained a a. Qualified opinion b. Disclaimer c. Unqualified/unmodified opinion d. Unqualified/unmodified opinion with an explanatory paragraph

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