For each independent situation noted below, state the type of audit opinion that should be expressed and provide a brief explanation for your choice. 1. A significant amount of the client's accounting records were destroyed by fire in the current financial year. The auditors were unable to obtain information from alternative sources. (2.5 marks available) 2. Due to the recent downturn in the Australian economy, Peter Parker Ltd has made substantial losses for the last four quarters and now has a negative working capital balance. The auditors of Peter Parker Lid have concerns over the entity's ability to continue as a going concern in the short to medium term and has raised these concerns with company management. Management have responded, saying they believe the company is fully solvent and have not disclosed these matters in the financial statements. (2.5 marks available) 3. You are currently engaged to audit Maloney Lid. Your audit team has found an error in inventory to the value of $115,000. The client refuses to make an adjustment as it is of the view that inventory has been correctly accounted for in the financial statements. Overall planning materiality is $85,000. (2.5 marks available) 4. You have completed the audit Jayco Limited and are ready to sign the audit report when you receive a copy of the client's annual report. This report contains supplementary information that is materially inconsistent with your audit findings. Management refuses to make any amendments to the annual report claiming that it is too late to change the supplementary information as it has gone to the printers. (2.5 marks available) A v B SX > X