For each of the following 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 (5 marks)

Pine Corporation is engaged in a hazardous trade and cannot obtain insurance coverage from any source. A portion of the corporations assets could be destroyed by a serious accident. The corporation has an excellent safety record and has never suffered a catastrophe. Although the lack of insurance coverage is not disclosed in the notes to the financial statements it is noted in the Presidents message included in the companys annual report.

Situation 2 ( 5 marks)

During the audit the corporate secretary refused to give the auditor access to the minutes of meetings. The controller stated that they contain information that is very confidential. The corporate secretary has agreed to provide a copy of all the resolutions and actions relating to accounting matters.