Question

In auditing the long-term investments account, CPA, is unable to obtain audited financial statements for an investee located in a foreign country. The CPA concludes sufficient appropriate audit evidence regarding this investment cannot be obtained. (For each of the following situations below, label the appropriate opinion type and report modification by selecting a choice from the appropriate tables below.

Situation	Opinion Type (OT)	Introductory Paragraph (IP)	Auditor's Responsibility Paragraph (ARP)	Opinion Paragraph (OP)	Basis for Paragraph Opinion (BPO)
1. Assume the potential effect on the financial statements is immaterial.
2. Assume the potential effect on the financial statement is moderate
3. Assume the Potential effect on the financial statement is high

Options;

OT: Unqualified, Qualified, Adverse, or Disclaimer

IP:Omit, No change, or Modify

ARP:Omit, No change, or Modify

OP:Omit, No change, or Modify

BPO: None required, Insert before opinion, or Insert after opinion.

____________________________________________________________

I just need someone check my work please, thank you!

This what had done:

1. OT: Unmodified, IP: No change, ARP: No change, OP: No change, and BPO: none required

2, OT:Qualified, IP: No change, ARP: Modify, OP: Modify, BPO: Insert before opinion

3. OT: Disclaimer, IP: Omit, ARP: Modify, OP: Modify, BPO: Insert before opinion

Answer 1

Dear Student,

I have your work it is perfect in Part 1 instead of Unmodified (Opinion Type (OT)), it should be Unqualified

An unqualified opinion refers to an audit report that ensures the provision of the financial that are free of any misrepresentations and maintained according to Generally Accepted Accounting Principles (GAAP).

A qualified opinion refers to an audit report that states the financial statements are not maintained according to Generally Accepted Accounting Principles (GAAP), however, they are free of any misrepresentations.

Disclaimer states that incompletion of accurate audit report due to appropriate and adequate financial records