For each of the following independent situations, select the type of financial statement audit report that you would issue. Assume that each item is at least material a. Abadi Mines, Incorporated, uses LiFO for valuing inventories held in the United States and FIFO for inventories produced and held in its foreign operations. b. Waker Computers is suing your client, Super Software, for royalties over patent infringement Super Software's outside legal counsel assures you, and you agree, that Walker's case is completely without merit Super Software does not disclose any contingency relating to the case. c. In prior years, Worcester Wool Milis has used current market prices to value its inventory of raw wool. During the current year, Worcester changed to FIFO for valuing raw wool. d. Upon review of the recent history of the lives of its speciafized service trucks, Gas Leak Technology justiflably changed the service lives for depreciation purposes on its trucks from five years to three years. This change resulted in a material amount of additional depreciation expense. e. During the audit of Kwame Bakery Equipment, you found that a material amount of inventory had been excluded from the company's financial statements, After discussing this problem with management, you become convinced that it was an unintentional oversight. Management appropriately corrected the erfor prior to your finalization of field work. t. Jay Rich, CPA, holds 10 percent of the stock in Rothenburg Construction Company. The board of directors of Rothenburg asks Rich to conduct its audit. Rich completes the audit and determines that the financial statements present fairly in accordance with generally accepted accounting principles. 9. Ramamoorthi Savings and Loan's financial condition has been deteriorating for the last five years. Most of its problems result from loans made to real estate developers in Saint Johns County. Your rovicw of tife loan portolio indicates that there should be a major increase in the loan-loss feserve. Based on your calculations, the proposed writedown of the loans will put Ramamoorthi into violation of the state's capital requirements. The client refuses to make the adjustment or to disciose the possible going concern issue in the notes to the financial statements. \begin{tabular}{|c|c|} \hline a. & Qualified or adverse audit repot depending on materiality or pervasiveness \\ \hline b. & \begin{tabular}{l} Qualified audit report or Disclaimer of opinion depending on materiality \\ pervasiveness \end{tabular} \\ \hline c. & \multirow{4}{*}{\begin{tabular}{l} Disclaimer of opinion \\ Qualifled audit report or Disclaimer of opinion depending on materiality \\ pervasiveness \end{tabular}} \\ \hline d. & \\ \hline e. & \\ \hline f. & \\ \hline g. & Qualifled or adverse audit repot depending on materiality or pervasiveness \\ \hline & Standard report with an emphasis-of-the-matter paragraph \\ \hline & Standard unqualified or unmodifled report \\ \hline \end{tabular}