For each of the following brief scenarios, assume that you are reporting on a client's financial statements. Select the type(s) of opinion (per below) possible for the scenario. In addition: Unless stated otherwise, assume the matter involved is material. If the problem doesn't tell you whether a misstatement pervasively misstates the financial statements or doesn't list a characteristic that indicates pervasiveness, two reports may be possible (i.e.. replies 6 to 9). Do not read more into the circumstances than what is presented. Do not consider an auditor discretionary circumstance for modification of the audit report unless the situation explicitly suggests that the auditor wishes to emphasize a particular matter. *Note that this simulation has more parts than one would expect in a particular CPA exam simulation. We present it to provide examples of many types of reporting situations in one problem. Types of opinion may be used once, more than once, or not at all. Situation 1 A company has not followed generally accepted accounting principles in the recording of its leases. 2 A company has not followed generally accepted accounting principles in the recording of its leases. The amounts involved are immaterial. A company valued its inventory at current replacement cost. Although the auditor believes that the inventory valuation method 3 inventory costs do approximate replacement costs, these costs do not approximate any GAAP 4 A client changed its depreciation method for production equipment from the straight-line method to the units-of-production method based on hours of utilization. The auditor concurs with the change Report