For each of the following independent situations:

i)Indicate the type of auditor's report to be issued

The types are :

a)Unqualified - standard wording

b)Unqualified - explanatory paragraph

c)Qualified opinion - inappropriate accounting policy or material misstatement

d)Qualified opinion - scope limitation

e)Disclaimer

f)Adverse

ii)Justify your conclusion by describing the conditions and nature of the issue that is affecting the type of audit report to be issued

iii)What would be an additional audit procedure for each scenario that you could conduct prior to the issue of the auditor's report that would address any issues that you have identified. Explain the purpose of the procedure.

Situation 1

Dig Corporation (Dig) is engaged in precious metal mining and exploration in two countries. Due to a rebel uprising in one of the countries, the local government is in need of funds has threatened to expropriate Dig's mining assets and seize its mineral rights. Although this threat has not been disclosed in the financial statements' notes, the company president issued a news release describing the situation's details.

Situation 2

During the audit at a drug manufacturing company, the inventory manager prevented the auditor from checking the expiry date of a certain expensive drug. The inventory manager stated that accessing the expiry date is difficult because the drug requires special-purpose packaging and wrapping when in the warehouse. The manager informed you that he is certain the drug is good for another nine months