Items $1$ through $8$ present various independent factual situations an auditor might encounter in conducting anaudit. For each item:$($a$)$ indicate the type of report you would issue$($e$.$g$.,$ adverse$)$;$($b$)$ if not unqualified, what caused the standard report to be altered $($e$.$g$.,$ departure from GAAP$),$ and$($c$)$ what major modifications to the standard auditor's report would be needed, if any $($do not write out thereport $-$ simply list what the key changes would be$)$During the course of the audit, the auditor suspects that a material amount of the client's assets have beenmisappropriated through fraud. Management refuses to assist the auditor in subsequent investigation ofsuspected transactions; thus, the auditor is unable to confirm the suspicions.Kempton Inc. changed its method of accounting for inventory during the current fiscal year. Kempton'schange from weighted$-$average to FIFO had an immaterial effect on the financials.