Consider the following independent scenarios. Assume that all entities involved are listed on the Australian Stock Exchange. (1) You are the auditor of MMK Ltd (MMK). Trade receivables is the most material account for MMK. However, the directors have informed you that two very large debtors with material balances are not to be circularised because of the problems caused by the circularisation last year. At the conclusion of the audit, you are satisfied that the financial report (including trade receivables) is presented fairly as alternative audit procedures were used to examine the debtors for which confirmation letters could not be sent. (2) You are the auditor of CHH Ltd (CHH). Due to recurring operating losses and working capital deficiencies, the status of the CHH as a going concern is extremely doubtful. However, the financial statement disclosures concerning these matters are adequate.

(3) You have been the auditor of a mining company, Shine Ltd (Shine), for the past four years. After experiencing declining profits over the past two years, Shine suffered a net loss of $2,455,600 for the year ended 30 June 2021. As of that date, current liabilities exceeded current assets by $352,560 and total liabilities exceeded total assets by $750,000. Shines mining leases are due for renewal on 31 December 2021. It is expected that an extra sum of $2 million will be needed in order to preserve these leases. The financial statements, prepared on a going concern basis, neither include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the company be unable to continue as a going concern. (4) You are the auditor of Shylo Ltd (Shylo) for the year ended 30 June 2021. Shylo issues Financial Statements that present the financial position and the results of oper

(5) You are the auditor of Deakin Ltd (Deakin). Management of Deakin has estimated the provision for doubtful debts and should be $595,000. As auditor you believe that the allowance should be $675,000. Management will not change its estimate. Profit before tax for the year is $725,000. Required: For each of the above situations (1-5), determine the appropriate audit opinion to be issued. Give reasons.