In your audit of Aviary Industries for calendar year 2013, you found a number of matters that you believe represent possible adjustments to the companys books. These matters are described below. Managements attitude is that once the books are closed, theyre closed, and management does not want to make any adjustments. Planning materiality for the audit was $100,000, determined by computing 5% of expected income before taxes. Actual income before taxes on the financial statements prior to any adjustments is $1,652,867. Possible adjustments:

1. Several credit memos that were processed and recorded after year-end relate to sales and accounts receivable for 2013. These total $26,451.

2. Inventory cutoff tests indicate that $25,673 of inventory received on December 30, 2013, was recorded as purchases and accounts payable in 2014. These items were included in the inventory count at year-end and therefore were included in ending inventory.

3. Inventory cutoff tests indicate several sales invoices recorded in 2013 for goods that were shipped in early 2014. The goods were included in inventory even though they were set aside in a separate area. The total amount of these shipments was $41,814.

4. The company wrote several checks at the end of 2013 for accounts payable that were held and not mailed until January 15, 2014. These totaled $43,671. Recorded cash and accounts payable at December 31, 2013, are $2,356,553 and $2,666,290, respectively.

5. The company has not established a reserve for obsolescence of inventories. Your tests indicate that such a reserve is appropriate in an amount somewhere between $15,000 and $30,000.

6. Your review of the allowance for uncollectible accounts indicates that it may be understated by between $35,000 and $55,000.

7. You tested the cost of the inventory using non-statistical sampling. The items you tested were overstated by a net $2,671. As a result, you project that the inventory likely is overstated by $28,946.

Determine the adjustments that you believe must be made for Aviarys financial required statements to be fairly presented. Include the amounts and accounts affected by each adjustment.

Questions: What type of audit opinion would you issue if management agreed, albeit reluctantly, to record your proposed adjustment for item 2 and 3, but absoluted refused to record your proposed adjustments for 1, 4, 5, 6, 7? Justify your answer please.