Described below are situations which have arisen in four unrelated external audit clients of your firm. The year-end in each case is 30 June 20X2. Heliodor Ltd (Heliodor) Heliodor suffered a flood in its head office and many of its accounting records up to the date of the flood in May 20X2 were destroyed. Heliodor have prepared their financial statements on the basis of estimates and by using the salvageable information. lolite Ltd (lolite) lolite paid 20,000 to a small IT consultancy company for advice on designing a new IT system. The IT consultancy company is a sole trader operated by the sister of the managing director (the majority shareholder of lolite). The managing director does not wish to disclose this transaction. Iolite's draft profit for the year is 1 million. Jade Ltd (Jade) Jade has included in trade receivables a balance of 50,000 relating to a company at which a liquidator was appointed shortly after the year end. The audit partner believes that this debt is irrecoverable. Jade has made no allowances against this debt. Jade's profit before tax is 3 million. No other errors or omissions were identified during the audit. Required: Explain and distinguish between the following three types of modified auditor's opinion. Your answer should include how each of these opinions are presented. Qualified opinion Adverse opinion Disclaimer opinion (6 marks) For each of the four circumstances above describe the modifications, if any, the auditor should make to their report. Justify your answer. You should include the type of audit opinion to be expressed in each case. The wording of the opinion is not required. The marks will be allocated as follows: Heliodor (5 marks) lolite (5 marks) Jade (4 marks) (Total for part b) 14 marks)