1. Stanford conducted the audit of Luck, a new cllent, this past year, Last year, Luck was audited by another CPA, who Issued an unmodified opinion on its flnancial statements. Luck is presenting financial statements for 2019 and 2020 in comparathe form. 2. One of Stanford's clents is RealCo, a real estate holding company, Assurne that RealCo experienced a significant decline in the value of its investment properties during the past year because of a downtum In the economy and has appropriately recognized that decline in market value under GAap. Stanford wishes to emphasize the decline In the econormy and its impact on RealCo's flinancial position and results of operations for 2020 in its audit report. 3. For the past five years, Stanford has conducted the audits of TechTime, a company that provides technology consulting services, and has always issued unmodifled oplnions on its financlal statements. Based on its 2020 audit, Stanford believes that an unmodified opinion is appropriate; however, Stanford did note that TechTime reported its third consecutive operating loss and has experienced negative cash flows because of the Inability of some of its customers to promptly pay for services received. 4. Sianford has assisted Cardinal Inc. with the preparation of its flnancial statements but has not aucited, compled, or reviewed those financlal statements. Cardinal wishes to include these financial statements in a communication that would describe Stanford's invoivement in the preparation of the financial statements. Stanford believes that Cardinal's communication is adequate and appropriately describes Stanford's limited role in the preparation of the financial statements. 5. Trees inc. presents summary financlal information along with its financial statemerits. The summary financial information has t. derived from the complete set of financial statements that Stanford has audited (and issued an unmodified opinion on the complete financial statements). A lender has engaged Stanford to evaluate and report on Trees' summary financial information; Stanford believes that the summery financial information is fairly stated in relation to Trees' complete financial statements. 6. S2anford believes that some of the verbiage In Plunkett's Management Discussion a Analysis section is inconsistent with the firm's financial statements. Stanford has concluded that Plunkett's financlal statements present its financial position, results of operations, and cash flows in accordance with GAAP and has decided to issue an unmodified opinion on Plunkett's financial statements. 7. Oil Patch is a client in the energy industry that is required to present supplementary oll and gas reserve information. Stanford has performed certain procedures regarding this information and concluded that it is presented in accordance with FASB presentation guldelines and does not appear to depart from GAAP. Based on Stanford's audit, it plans to issuer an unmocified opinion on Oi Patch's financlal statements. Required: How would each of these issues affect Stanford's report on the client's financial statements