Emily Corporation is engaged in precious metal mining and exploration in two countries. Due to a rebel uprising in one of the countries, the local government is in need of funds has threatened to expropriate Dig’s mining assets and seize its mineral rights. Although this threat has not been disclosed in the financial statements’ notes, the company president issued a news release describing the situation’s details.

Auditing Question

1. Indicate the type of auditor’s report to be issued
2. Justify your conclusion by describing the conditions and nature of the issue that is affecting the type of audit report to be issued
3. Provide an additional audit procedure for each scenario that you could conduct prior to the issue of the auditor’s report that would address any issues that you have identified. Explain the purpose of the procedure