4 4 4 4 Scenario Check a) Description Thorn Company has reported several gains for the period, but has not provided any explanation or proof of how they occurred. Due to recent layoffs, Monte Carlo Ltd. was not able to complete and issue b) its 2018 financial statements and accompanying notes. The information was instead included with the 2019 financial report in the following year. To value inventory, Toland and Sons uses a different accounting policy from the rest of the companies in the same industry. There is no justification for the use of this accounting policy in the notes to the financial statements. c) Eris Laboratories has used many uncommon medical terms and scientific d) language in the notes to the financial statements. This language was not explained anywhere else. A bank decided not to grant a loan to Mida Ltd. after a customer filed a e) substantial lawsuit. Mida Ltd. Did not include any mention of the lawsuit in the financial statements or in the notes to the financial statements.