8.23 For the following independent situations, assume you are the audit partner on the engagement. 1 During your examination of Debold Batteries, you conclude there is a possibility that inventory is materially overstated. Management refuses to allow you to expand the scope of your examination sufficiently to verify whether the balance is actually misstated. 2 You are auditing Woodcolt Linen Services for the first time. Woodcolt has been in business for severat years but has never had an audit. After the audit is completed, you conclude that the current-year financiat report is presented fairly in accordance with accounting standards. The client didn't authorise you to do test work fotany of the previous years. 3 You were engaged to isamine Cutter Stoel Company Ltd's financial statements after the close of the financiat year. Because you weren't engaged unti after the financial report date. you weren't able to physically observe inventory. which is highiy matenla On the completion of your audit. you are satisfied that Cutter's financial statements are presented tarly, including inventory, about which you were able to satisfy yourself by the use of atternative audit procedures. 4. Four weeks atter the year-end date. a major custamer of Prince Construction Company Ltd went into tiquidation. Because the customer has contirmed the batance cue to Prince at the financial report date. management refuses to charge oft the account or otherwise disclose the information. The receivable represents approximately 10% of accounts receivable and 20% of profit trom ordinary activities. 5 Auto Delivery Company Lta has a fleet of several delivery trucks, in the past. Auto Delivery has followed the policy of purchasing all equipment in the current year. it decided to louse the trucks. The method of accounting for the trucks is therefore changed to lease capitalisation. This change in policy is fully disclosed in footnotes. REQURED For each situation. State the type of audit report that should be issued. If yauradeeision depende