C. Modbury Ltd has prepared financial statements on time, but has also decided to exclude the cash flow statement, Management explains to the auditor that the users of their financial statements find that statement to0 complicated and consequently, they have it from the Annual Report. (2 marks) particular financial decided to exclude D. You are auditing XYZ Lid, an ASX isted company with several subsidianes issued a Another auditor was used to audit a subsidiary, ABC Pty Ltd, and modified opinion accounts of ABC are not considered material to the financial the economic entity. (2 marks) on its accounts in relation to inventory valuation. The statements of E. The client, Toys-For-You Ltd refused to undertake a physical inventory its "new inventory management system is pertect and count, arguing that there are unlikely to be any major mistakes in the records. However, the audit procedures reveal a number of weaknesses in the new system. Inventory is a material amount in the financial statements. (2 marks) For each of the above situations you are required to indicate the type of audit opinion you would issue, as well as the reasons for issuing the particular audit opinion. Required: Section (C