(b) Suggest with reasons the type of auditor's report and opinion that may be issued in each of the following scenarios: 1 II. The closing inventory of Palawan Berhad has been inflated. After discussing it with you, management reassessed the inventory value. You are satisfied with the management's restatement as it complies with the appropriate standard, The lease obligation has been excluded from Kappa Berhad's statement of financial position. However, in order to meet approved accounting standards, you believe that the item is of importance to the financial statement and should therefore be recognised as a financial lease. The client disagreed with you and refused to reflect the item in the financial statements accordingly. A recent change has occurred in Suriname Berhad's credit risk profile. As a result, Suriname Berhad management does not permit the auditor to review the credit risk policy of the company, citing outdated being the reason. The auditor III. EAB21103_Audit 1 Page 3 of 7 JANUARY 2021 CONFIDENTIAL repeatedly requested a draft of any amended credit risk policy, but this request was ignored by the audit client. iv. Kyushu Berhad has been valuing its inventory using the last in first out (LIFO) method. You informed your client that the inventory valuation approach used was not permitted by the financial reporting system. The management, on the other hand, has ignored your advice, claiming that the design of their inventory better fits the LIFO system