25. During the course of an audit of the financial statements of Excellent Corp., Smart, CPA discovers the company's vice-president misrepresented one of the company's products before the Food and Drug Administration (FDA) by falsifying test results. Unasserted claims, material in amount, are probable in the near future. Management refuses to include a liability for such claims even though it is probable that they will occur and the amount of loss can be reasonably estimated. Smart should issue a report with a(n): a. Adverse opinion or qualified opinion b. Qualified opinion but should not consider expressing an adverse opinion c. Disclaimer d. Unmodified opinion with an emphasis-of-matter paragraph 26. Alpha Company uses its sales invoices for updating its perpetual inventory records (meaning. its shipments of inventory are recorded in the accounting system only after sales invoices are prepared). Inadequate control activities over the invoicing function allow goods to be shipped that are not invoiced. The inadequate control activities could cause an: A. Understatement of revenues, receivables, and inventory. B. Understatement of revenues and receivables and an overstatement of inventory. C. Overstatement of revenues and receivables and an understatement of inventory D. 0herstatement of revenues, receivables, and inventory