Qualified for Misstatement

Question 1

Qualified or Adverse Opinion

Answer 1

illegal act

Question 2

A unqualified opinion will be modified if the footnote states?

Answer 2

certain related party transactions were consummated equivalent to terms with those of unrelated parties which would not be considered acceptable unless the auditor verified that the representations were correct

Question 3

Omits the statement of cash flow would be a qualified opinion

Answer 3

true

Question 4

Qualified Opinion

Answer 4

auditor concludes that misstatements are material, but not pervasive to the financial statement

Question 5

Adverse Opinion

Answer 5

auditor concludes that misstatements are material, and pervasive to the financial statements.

Question 6

Effect of a Qualified Opinion on Audit Report

Answer 6

change audit responsibility one sentence

add “Basis for Qualified Opinion” before opinion paragraph