Consider the following independent situations found during audit testing of by auditors in various companies which have a balance dates of 30 June 2020. Assume that all the situations are material.

(i) A recent investigation has seen the Bundle company discover that it has been underpaying its workers for over 8 years. As the company is attempting to obtain further finance and refinance its existing debt it advises it is willing to pay all its workers all their back pay and is unwilling to adjust its current financial statements.

(ii) For the Molina Company 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.

(iii) The draft chairmans report of Able Ltd states that the profits of a particular segment of the companys operations increased by 50% during the period. On checking the figures, you found profits increased by only 14%. The profit figure has been verified when carrying out your normal audit procedures

(iv) You have asked your New Zealand branch office of your firm to carry out an investigation of the inventory figures in the New Zealand division of the Quick company. Your New Zealand branch have advised they were unable to attend the stock take due to a sudden flood. This both prevented the auditors from attending the stock take, and destroyed documentation which would have enabled them to substantiate inventory by other means. The New Zealand division represents about 15% of CD Ltd.s operations.

(v) The entire Queensland operations of Travel company are suffering with an eighty percent decline in profit due to COVID19. This has been disclosed adequately in the accounts but the you are concerned about the ongoing operations of the company once the Government Job keeper subsidy is withdrawn in March 2021.

Required:

Assume that no adjustments are made. For each situation, taking into account all aspects, identify the audit report should be provided for each of the above including explaining the basis of your answers.