In each of the hypothetical independent situations described below, indicate the appropriateaudit reportto be issued. If the report is not a standard unmodified report, also state whichspecific conditionis responsible for the departure.

1)One week before the end of fieldwork/audit report date, you discover that Norton Wilson, the audit manager for the Smith LTD audit, owns a material amount of Smith LTD common stock.

2)You are the auditor of Construction Ltd. that builds houses in a rural area that has experienced a population decline due to lack of jobs. While business for Construction Ltd. has been adequate to earn a small profit, the company decided to diversify and buy larger pieces of land on the outskirts of a nearby growing urban centre. The company divides the land and sells the sections to individuals. Based on your audit, you determine that Construction Ltd has been allocating smaller amounts of overall company costs to the sections sold in order to boost profits. This has resulted in the unsold sections being overvalued. The directors of the company disagree with your audit conclusion and hold to the view that their valuation of the sections is accurate. The amounts in question are material but not pervasively material.

3)For the audit of the non-profit entity, Save the Pets, Ltd, you discover that the entity has not substantiated vouchers or receipts for 85% of its expenses, other than salaries.

4)You are the auditor of a New Zealand travel agency for the year ended 31 December 2020. The company has prepared the financial statements in the same manner as it has for the last 10 years of operation. However, starting in March 2020, the company has been unable to book any travel for customers as a result of the COVID 19 lockdown and border closure. While a few customers were able to travel to visit family overseas in the latter half of the year, 95% of the company's business has ceased. There is no hope of a change of this situation in the foreseeable future.