Following areindependentsituations involving reporting in audit and related issues.

a.A CPA has just concluded an audit of the financial statements of a retail store.

This is a first-time engagement for the CPA for this client, an owner-managed small business that is seeking new financing from a local bank. The CPA was able to obtain sufficient evidence during the audit, and has concluded that the financial statement amounts are plausible except for the valuation of ending inventories, which the CPA believes is not in accordance with IFRS. Accordingly, the CPA expresses a reservation in her audit report, which states:

"Except for the failure to value inventories in accordance with IFRS, as described in the preceding paragraph, I believe that these financial statements are plausible."

b.A CPA is auditing the financial statements of an antique store specializing in

antique furniture from the Far East. Because of the difficulties in authenticating antiquities, the CPA reviews a report from an expert retained by the CPA and who assisted obtaining sufficient appropriate audit evidence in valuing the inventory. The CPA is satisfied that the expert is independent and qualified to do the work. The CPA therefore issues an unqualified opinion on the client's financial statements, with an explanatory paragraph explaining her reliance on the expert's work.

c.A CPA's audit client leases a substantial part of its assets. In the opinion of the CPA, the leases are structured in such a way that these leases are to be capitalized as finance leases. However, the client refuses to do so. As a result, the CPA denies an opinion on the financial statements, thereby alerting readers to the possibility that the financial statements may be materially misstated.

d.A CPA is performing management advisory services for an audit client, a company whose shares are publicly traded. The CPA learns that the financial statements issued in the previous fiscal year, on which the CPA gave an unqualified opinion, were materially misstated due to a failure to record certain liabilities. Since these audited financial statements were issued 6 months ago, the CPA reasons that the information is no longer current and agrees with the client that nothing needs to be done since the liabilities have, in fact, now been paid.

e.The president of a privately held company asks the CPA who is auditing the company's financial statements not to examine the private payroll records of the officers and senior executives. The president explains that he fears that, were these amounts to become known, there would be serious conflicts within the organization. Rather, the president proposes to sign a letter to the CPA guaranteeing that the payroll has been properly prepared and accounted for in accordance with ASPE. The CPA accepts this restriction and, finding no material misstatements, issues an unqualified opinion on the financial statements.

f.A CPA has been asked to audit and report on the financial statements of a

Canadian company prepared in accordance with IFRS. The CPA does so, finds no material misstatements, and concludes that there are no significant differences between the client's financial statements prepared using IFRS. The CPA therefore issues an unmodified auditor's report with the following opinion paragraph:

"In my opinion, these financial statements present fairly, in all material respects, the financial position of the company as at December 31, 2020, and the results of its operations and changes in cash flow for the year then ended in accordance with generally accepted accounting principles."

Required:

For each situation, indicate whether youagreeordisagreewith the CPA's actions, report issued or other circumstances described,and explain your reasoning.