Audit Reports Practice Test

A nonissuer entity is undergoing a financial statement audit under AICPA standards. The auditor is not independent due to providing prohibited nonattest services without appropriate safeguards, and the lack of independence exists throughout the period of the professional engagement. The auditor is asked whether a modified opinion can be issued. What is the most appropriate action for the auditor to take?

A nonissuer technology startup is undergoing a financial statement audit under AICPA standards. The auditor concludes there is substantial doubt about the entity’s ability to continue as a going concern for a reasonable period of time, and management’s disclosures are adequate. The auditor’s opinion is otherwise unmodified. How should the auditor's report be modified given these circumstances?