5 10 points SAVE ANWEN Consider the following independent situations found during audit testing of Patmos Engineering Ltd, which has a balance date of 30 June 2022. Assume that all the situations are material and Hinterland was not prepared to make any adjustments. 1. A large order from an overseas supplier was shipped FOB (free on board) from its port of origin on 1 June 2022. The order arrived on 20 July 2022. The purchase is not reflected in the 30 June 2022 financial report. 2. Recent industrial action has seen trade unions win a pay increase of 5% for all their members. Under the terms of the agreement, the pay increase will be backdated to 1 January 2022. Management has agreed to the pay increase however they have not made any adjustments to the 30 June 2022 financial report. 3. The draft chairman's report to go with the financial report states that the profits of a particular segment of the company's operations increased by 40% during the period. On checking the figures, you found profits increased by only 4%. 4. Your Western Australian branch office disclaimed responsibility for the inventory figures in the Western Australian division's reporting package. The disclaimer was given because sudden flooding prevented the auditors from attending the stocktake and destroyed documentation which would have enabled them to substantiate inventory by other means. The Western Australia division represents about 10% of Patmos operations. Required Treat each situation separately and: a. identify the account balances (if any) that should have been adjusted. (2 marks) b. indicate the type of audit opinion required. (4 marks) c. explain the reason for selecting that audit opinion. (4 marks)