For the following independent situation assume that you are the audit partner on the engagement: 1.You found that the depreciation is calculated on the total of land and buildings. Total depreciation is $5m and the element charged to land only is $1.4m. Profit before tax is $20m.

2.BTV Company has been struggling to pay salaries to employees on time and there is doubt about the possible renewal of the broadcasting license. Management did not specifically disclose the situation in the company's annual report as it has been publicly known.

3.Fortune Co has 20% inventory held by Just Department Store on a consignment basis. Confirmation request has been already sent to them after the year end. However, no reply has been received after repeated follow-ups. Inventory represents 30% of the total asset.

4.Your client, Harrison Automotive, has changed from straight0line to sum-of-the years' digits depreciation. The effect on this year's income is material, and the facts are adequately disclosed in footnotes. You believed the change aligns with change in usage pattern of the automobile.

5.Your client's computerized wages program is backed up daily, however for a period of two months the wages records and the back-ups have been corrupted, and therefore cannot be accessed. Wages and salaries for these two months are $2.2m. Profit tax is $20m.

6.Assume the same fact as situation 2, except that the situation has been specifically disclosed in the footnotes.

Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.