Question

In which of the following circumstances would an auditor not express an unmodified opinion? There has...

In which of the following circumstances would an auditor not express an unmodified opinion?

There has been a material change between periods in accounting principles.

The auditor is unable to obtain audited financial statements of a long-term investee.

The auditor wishes to emphasize an unusually important subsequent event.

Quarterly financial data required by the SEC have been omitted.

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Answer #1

In case where the auditor is unable to obtain audited financial statements of a long-term investee, the auditor would report a qualified opinion or a disclaimer of opinion but an unmodified opinion cannot be expressed.

In case where Quarterly data required by SEC is omitted or where auditor wishes to emphazise unusally important transaction, the same can be reported by way of emphasis of matter paragraph and will not require issuing a modified opinion.

Further, material change is accounting principles between two periods is a mere dsiclosure and can be provided in an unmodified report itself.

Therefore, second option, "The auditor is unable to obtain audited financial statements of a long-term investee", is the correct option.

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