1. For each of the following 2 independent situations discuss the type of audit opinion(s) to be issued, give your reason(s) and in each situation describe any changes necessary to the standard audit report. State your assumptions and consider in your response all possible alternatives

Situation 1: XYZBooks.com is the online outlet for a used book store chain. Online sales are recorded when the orders are placed. Books are normally shipped within three business days. Last year, there was about $45,000 in orders in the last three business days of the fiscal year, while in the current year there was about $30,000.

Situation 2 The client did not allow the auditor to observe the physical inventory count taken at the year end.