Described below are situations which have arisen in independent external audit clients: (i) Management wanted to reduce the allowance for doubtful debts by RM5 million. The auditors did not agree and felt that it should stay at its current level. (ii) The auditor was engaged to audit the client after the entity's year end, so the auditor could not observe the inventory count that was held at year-end. (iii) The entity is a defendant in a major litigation (relating to a faulty product) that has not been settled as of the date of signing the auditor's report. (iv) A fire in the company's office because of a faulty photocopier has destroyed all records of accounts receivable as at year-end. (v) The company changed its method of depreciation from straight line method to reducing balance method, necessitating a restatement of previous year's statements. Required: Assume that the above separate circumstances could be sufficiently material to require the expression of a qualified opinion. Indicate the effect of these circumstances on the auditor's report with relevant explanation