8. While reviewing your audit client's, Gazi Limited's (Gazi's) draft annual report, you note that some information within management's discussion and analysis is materially inconsistent with information contained in the financial report. Gazi's management does not agree with you and will not change the information in question. If you are satisfied in all other material respects except for the matter described above, the type of audit opinion for the Gazi engagement should be:

a) Unmodified with emphasis of matter paragraph.

b) Qualified.

c) Unmodified.

d) Unmodified with other information section outlining the inconsistency.

9. You are the auditor of Piraeus Limited (Piraeus) for the financial year ending 30 June 2017. The fieldwork for the Piraeus audit was completed on 2 August 2017, the audit report was signed on 21 August 2017 and the financial report issued on 30 August 2017. On 8 September 2017, it comes to your attention that a major supplier of Piraeus, Zappio Limited (Zappio) has gone into liquidation. There were indications that this might be a possibility when you were undertaking the Piraeus audit and your investigations revealed that there were alternative suppliers that Piraeus would be able to use should this eventuate. Which of the following describes the MOST appropriate action, if any, you would require Piraeus's management to undertake in relation to its 2017 financial report?

1. a)Adjust the financial statements to remove the amount payable to Zappio.
2. b)Disclose by way of subsequent event note to the financial report.
3. c)No action required.
4. d)Recall and revise the 2017 financial report.

10. Your audit client, Michalis Limited (Michalis), is being sued for breach of contract for an amount which you consider to be material to the financial report. The matter has been disclosed as a contingent liability. Michalis' lawyers have advised that it is probable that the company will not be found liable, a view that has been repeated by your independent legal adviser. If you are satisfied in all other material respects except for the matter described above, the type of audit opinion for the Michalis engagement should be:

a) Disclaimer of opinion.

b) Qualified.

c) Adverse.

d) Unmodified.

11. You are the auditor for Syggrou Limited (Syggrou), an electronics retailer, for the financial year ending 30 June 2017. Your subsequent events review indicates that one of Syggrou's older product lines is being sold below cost. You have calculated the amount of overstatement of the particular inventory to be $250,000. You have requested Syggrou's management to write down the inventory in question but they have declined . If materiality for the Syggrou audit is set at $500,000 and you are satisfied in all other respects except for the matter described above, the type of audit opinion for the Syggrou engagement should be:

a) Unmodified.

b) Unmodified with emphasis of matter paragraph.

c) Qualified.

d) Disclaimer of opinion.