Assume that the following separate circumstances could be sufficiently material to require the expression of a qualified opinion.

1. The company sacked its computer systems controller during the year. Before she left, she corrupted the system and, as a consequence, destroyed all financial records.

The cash flow statement does not conform to the requirements of FRS 1 (IAS 7).

3. Finished goods stored in Singapore were not observed or test-counted. The items constituted 10 per cent of closing stock.

4. The entity is the defendant in major litigation that has not been settled at the report date.

5. Profits on long-term construction contracts are recognised by a method inconsistent with SSAP 9 (IAS 11). .

6. The continuation of the company as a going concern is in doubt.

7. Another firm of auditors audited a subsidiary that accounted for five per cent of the consolidation’s total assets and 10 per cent of the total revenues.

8. The entity changed its stock valuation method from average cost to first-in first-out, necessitating a restatement of prior years’ statements.

Required

Indicate the effect of the above eight circumstances on the auditors’ report.