For each of the following situations, indicate the type of financial statement audit report you would issue. Assume that each item is at least material. You might use each type of report once, more than once, or not at all. [Choose Barefield Corporation, a wholly owned subsidiary of Sandy, Inc., is audited by another CPA firm. As the auditor of Sandy. Inc., you have assured yourself of the other CPA firm's independence and professional reputation and are willing to take complete responsibility for its audit work. er The management of Bonner Corporation has (Choose] decided to exclude the statement of cash flows from its financial statements because it believes that its bankers do not find the statement to be very useful. [Choose You are auditing Diverse Carbon, a manufacturer of nerve gas for the military. for the year ended September 30. On September 1, one of its manufacturing plants caught fire, releasing nerve gas into the surrounding area. Two thousand people were killed and numerous others paralyzed. The company's legal counsel indicates that the company is liable and that the amount of the liability can be reasonably estimated, but the company refuses to disclose this cements The company's legal counsel indicates that the company is liable and that the amount of the liability can be reasonably estimated, but the company refuses to disclose this information in the financial statements, Assume the effect is pervasively material. 7 -Hill [Choose] Rating of During your audit of Cuccia Coal Company. the controller, Tracy Tricks, refuses allow you to confirm accounts receivable because she is concerned about complaints from her customers. You are unable to satisfy yourself about accounts receivable by other audit procedures and you are concerned about Tracy's true motives. Assume the effect is pervasively material. Course Page oach Roster [Choose ] Johnstone Manufacturing Company has used the double-declining balance method to depreciate its machinery. During the current year, management switched to the straight-line method because it felt that it better represented the utilization of the assets. You concur with its decision. All information is adequately disclosed in the financial statements. 10 pts Question 7