24. For each of the following independent situations, indicate the reason for and the type of financial statement audit report that you would issue. Assume that all companies mentioned are private companies and that each item is at least material. (13 POINTS) A in the current year, your client, Ink International, acquired a new 60% subsidiary. It will be consolidated with Ink. You concur with the accounting B. Upon review of the recent history of the lives of its specialized automobiles, Turbo Technology justifiably changed the service lives for depreciation purposes on its autos from seven years to five years. This change resulted in a material amount of additional depreciation expense. C During the audit of Brannon Bakery Equipment, you found that a material amount of inventory had been excluded from the company's financial statements. After discussing this problem with management, you become convinced that it was an unintentional oversight. Management appropriately corrected the error prior to your finalization of fieldwork. D. Superior Savings Bank's financial condition has been deteriorating for the last three years. Most of its problems result from loans made to real estate developers in Coward County. Your review of the loan portfolio indicates that there should be a major increase in the allowance for loan losses. Based on your calculations, the proposed write down of the loans will put Superior into violation of the bank regulators' capital requirements. The client refuses to make the adjustment or disclose the possible going concern issue in the notes to the financial statements. E Crazy Computers is suing your client, Super Software, for royalties over patent infringement. Super Software's outside legal counsel assures you that Crazy's case is completely without merit. F. Papermills, Inc., uses LIFO for valuing inventories held in the United States and FIFO for inventories produced and held in its foreign operations