Question

More than one modification should be included in the audit report when?

1) the auditor is not independent and the auditor knows that the company has not followed generally accepted accounting principles.
2) there is substantial doubt about the going concern of the company and information about the causes of the uncertainties is not adequately disclosed in the footnotes.
3) there is a scope limitation and there is substantial doubt about the company's ability to continue as a going concern.
4) all of the above

Answer 1

To include more than one modification in an audit report, all of the situations provided need to be present.

Step-by-step explanation:

All of the above

are situations where more than one modification should be included in the audit report. When the auditor is not independent and knows that the company has not followed generally accepted accounting principles, when there is substantial doubt about the going concern of the company and information about the causes of the uncertainties is not adequately disclosed, and when there is a scope limitation and substantial doubt about the company's ability to continue as a going concern. In each of these cases, the audit report should include multiple modifications to accurately reflect the issues at hand.