Limitation on Scope. Lorts Corporation of Maastricht, the Netherlands, (whose fiscal year will end 31 December 20X8) informs you on 18 December 20X8 that it has a serious shortage of working capital because of heavy operating losses incurred since 1 October 20X8.

Application has been made to a bank for a loan, and the bank’s loan officer has requested financial statements.

The management of Lorts Corporation requests a meeting with you. You try to imagine the following independent sets of circumstances.

1 Lorts asks that you save time by auditing the financial statements prepared by Lort’s chief accountant as of 30 September 20X8. The scope of your audit would not be limited by Lorts in any way.

2 Lorts asks that you conduct an audit as of 15 December 20X8. The scope of your audit would not be limited by Lorts in any way.

3 Lorts asks that you conduct an audit as of 31 December 20X8 and render a report by 16 January. To save time and reduce the cost of the audit, it is requested that your examination not include confirmation of accounts receivable or observation of the taking of inventory.
4 Lorts asks that you prepare financial statements as of 15 December 20X8 from the books and records of the company without audit. The statements are to be submitted on plain paper without your name being associated in any way with them. The reason for your preparing the statements is your familiarity with proper form for financial statements.
Required
Indicate the type of opinion you would render under each of above set of circumstances. Give reasons for your decision.