(TCO 2) Lose Big Inc., a U. company, is a defendant in a lawsuit alleging infringement of certain patent rights.

(TCO 2) Lose Big Inc., a U.S. company, is a defendant in a lawsuit alleging infringement of certain patent rights. However, the ultimate outcome of the litigation cannot be reasonably estimated by management. Janice Jones, CPA, believes there is a reasonable possibility of a significant material loss, but the lawsuit is adequately disclosed in the notes to the financial statements.

From the following opinion types, select and write the opinion type or types that can be used by the auditor. Up to two opinion types can be selected.

In addition, select and write the appropriate report modification options that are required to be made by the auditor. You can select as many options as apply. (Becker, Adopted)

  1. Opinion Options Unmodified
  2. Except for qualified
  3. Adverse
  4. Disclaimer
  5. Report Modification Options
  6. Issue the independent auditor’s report without modification
  7. Modify the introductory paragraph
  8. Modify the auditor’s responsibility paragraph
  9. Omit the auditor’s responsibility paragraph
  10. Modify the opinion paragraph
  11. Add an emphasis-of-matter paragraph preceding the opinion paragraph
  12. Add an emphasis-of-matter paragraph following the opinion paragraph

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