2. Assume that you are the audit partner of Adens furnishing Inc., in your audit youconclude that there is a possibility that inventory is materially overstated. The client refuses to allow you to expand the scope of your audit sufficiently to verify whether the balance is actually misstated. In this situation what will be the form of audit report that you are going to submit based on the following criteria.

a) Condition in your report

b) Materiality level

c) Type of report

d) Justify your answer (Comments)

3. Assume that you are the audit partner on the engagement with Austria Furnishing Inc. You complete the audit of Austria Furnishing Inc, and in your opinion, the

financial statements are fairly presented. On the last day of the audit, you discover that

one of your supervisors assigned to the audit has a material investment in Austria Furnishing.

In this situation write your report based on the following criteria

a) Condition in your report

b) Materiality level

c) Type of report

d) Justify your answer (Comments)