For each of the following independent situations, assume that any amounts would be material. (I) Indicate the TYPE of appropriate audit report; A. unqualified, B. qualified or adverse, C. qualified or disclaimer, D. Disclaimer, E. Qualified only, or F. Other. INDICATE the situation involved, i. e. Accounting situation, and DISCUSS the situation. (II) State whether an explanatory paragraph would be included, and if so, what would be included in the explanatory paragraph. (III) For an UNQUALIFIED auditors report, if the wording would be changed, indicate how it would be Changed [Relates to Shard Report] 1. The company changes from First-In, First-Out (FIFO) to Last-in, Current-Knowledge (LICK) for inventory valuation purposes. 2. The CPA firm was not able to observe or take part in the taking of the companys physical inventory. The company uses the periodic inventory system to value inventory. 3. The company refuses to include a Statement of Cash Flows with the financial statements. Management feels that the Income Statement should be the users focus. 4. The company uses Lower of Cost or Market, rather than Replacement Cost, to value inventory. 5. The company uses an appraisers estimate of current Replacement Cost to report the value of previously acquired land owned by the company. It is felt that this is more recent information. 6. The status of the client as a going concern is extremely doubtful. The matter Is disclosed in the footnotes of the financial statements. 7. A Partner of the CPA firm doing the audit of ABC Company has a financial interest in ABC Company. 8. Part of the audit is being performed by another CPA firm. In the auditors report, the Principle Auditor (Group Engagement Auditor) decides to make reference to the Other Auditor (Component Auditor).