Chapter 15 For each of the following independent situations, assume that any amounts would be material. (0) Indicate the TYPE of appropriate audit report; A. unqualified, B. qualified or adverse, C. qualified or disclaimer, D. Disclaimer, E. Qualified only, or F. Other. INDICATE the situation involved, i.e "Accounting situation", and DISCUSS the situation.Con notes Shipon the explanatory paragraph. Changed [Relates to Shared Report). () State whether an explanatory paragraph would be included, and if so, what would be included in (I) For an UNQUALIFIED auditor's report, if the wording would be changed, indicate how it would be 1. In auditing the long-term investments account (company uses the equity method for this investment), an auditor is unable to obtain audited financial statements for an investee located in a foreign country. 2. The status of the client as a going concern is extremely doubtful. The matter is disclosed in the footnotes. 3. The partner of the CPA firm doing the audit of ABC Company has a financial interest in ABC Company. 4. The company uses Lower of Cost or Market rather than Historic Cost to value inventory. It is felt that this is more recent information. 5.)Part of the audit is being performed by another CPA firm. In the auditors' repo Auditor (Group Engagement Auditor) decides to make reference to the Other Auditor (Component Auditor). 6. The company changes from First-in, First-out (FiFO) to Average Cost for inventory valuation. 7. The CPA firm was not able to observe or take part in the taking of the company's physical inventory The company uses the periodic inventory system to value inventory. The company refuses to include a Statement of Cash Flows with the financial statements Management feels that the Income Statement should be the users focus. in come Balance 8. 9. The company uses an appraiser's estimate of current Replacement Cost to report the value cf previously acquired land owned by the company. It is felt this is more recent information