1. The scope of the auditor's examination is affected by conditions that preclude the application of a necessary auditing procedure.

2. The auditor decides to make reference to the report of another auditor as a basis, in part, for expressing an opinion.

3. The financial statements are affected by an alternative accounting treatment that is a departure from GAAP. The use of GAAP would cause the statements to be misleading.

4. GAAP Principles have not been applied consistently, but management was justified in making the change. And the change was accounted for prospectively, the new method is an acceptable under GAAP.

5. Doubt about the company's ability to continue as a going concern is fully disclosed in the notes to the financial statements.

6. The financial statements are subject to an uncertainty that will likely result in a material loss. Management has been unable to estimate the amount of potential loss, but has properly disclosed the details of the situation.

7. The company changed its method of valuing inventory, but management did not have appropriate justification for the change. The change is properly disclosed in the financial statements.

8. A predecessor auditor's unqualified opinion for a prior year's report on comparative financial statements is not presented.

9. Required supplementary information is omitted from the financial statements.

10. The auditor wishes to emphasize the acquisition of newly acquired companies.