Consider the following independent situation found during audit testing of CD Ltd, which has a balance date of 30 June 2020. Assume that all the situation is material.

Required:

Assume that no adjustments are made. Identify the type of audit opinion required and explain the basis of your answers.

1.A large order from an overseas supplier was shipped FOB (free on board) from its port of origin on 1 June 2020. The order arrived on 20 July 2020. The purchase is not reflected in the 30 June 2020 financial report.

2.The draft chairman's report to go with the financial report states that the profits of a particular segment of the company operations increased by 70% during the period. On checking the figures, you found profits increased by only 4%

3.Your New Zealand branch office disclaimed responsibility for the inventory figures in the New Zealand division's reporting package. This is because sudden flooding prevented the auditors from attending the stocktake, and destroyed documentation which would have enabled them to substantiate inventory by other means. The New Zealand division represents about 10% of CD Ltd's operations