17. Several independent audit situations are presented here. Assume that everything other than what is described would have resulted in an unqualified opinion on the company's financial statements. Indicate the type of opinion you believe should be expressed in each situation and explain your choice. If an explanatory paragraph is needed, indicate whether it should precede or follow the opinion paragraph. ca. The auditor was unable to obtain confirmations from two of the client's major customers that were included in the sample. These customers wrote on the confirmation letters that they were unable to confirm the balances because of their accounting systems. The auditor was able to achieve satisfaction through other audit procedures. (). The client changed from FIFO to LIFO this year. The effect is material. Address the following two situations: . The change was properly accounted for, justified, and disclosed. tij. The change was properly accounted for and disclosed, but was not properly justified. c. The client is engaged in a product liability lawsuit that is properly accounted for and adequately described in the footnotes. The lawsuit does not threaten the going. concern assumption, but an adverse decision by the court could create a material obligation for the client. (d). The status of the client as a going concern is extremely doubtful. The problems are properly described in the footnotes. (.). During the audit of a large manufacturing company, the auditor did not observe all locations of physical inventory. The auditor chose a random number of sites to visit, and the company's internal auditors visited the other sites. The auditor has confidence in the competence and objectivity of the internal auditors. The auditor personally observed only about 20% of the total inventory, but neither the auditor nor the internal auditors noted any exceptions in the inventory process. (5x1 mark=5 marks)