$1.$ Camo Corporation carries its property, plant, and equipment accounts at current market values. Current market values exceed historical cost by a highly material amount, and the effects are pervasive throughout the financial statements.

The available actions are outlined below:

a$)$ Issue a standard unqualified report.

b$)$ Qualify both the scope and opinion paragraphs.

c$)$ Qualify the opinion paragraph.

d$)$ Issue an unqualified opinion with an explanatory paragraph.

e$)$ Issue an unqualified opinion with modified wording $($no explanatory paragraph$).$

f$)$ Issue an adverse opinion.

g$)$ Disclaim an opinion.

Required:

$1)$ Prepare a table reflecting, for each distinct scenario listed $(1-8),$ specifying the correct course of

action $($a$-$g$)$ to be undertaken.

$2)$ By reference to the data in this problem, distinguish between a qualified opinion, adverse opinion,

and a disclaimer of opinion, and explain the circumstances under which each is appropriate.