None of the following items have been disclosed in the financial statements.

a. Company A stopped paying half-yearly dividends to shareholders during the audit period ending 30 June 2018. This was to help finance a new plant purchased by A in May 2018.

b. Company B is involved in a long-term finance lease arrangement for a $600,000 machine. Bs directors will not apply the relevant accounting standard so as to capitalise the lease asset and liability.

c. Company Cs accounting records are destroyed in a fire with the audit only partially complete.

d. The directors of Company D refuse to write-off material stock losses. As auditor, you also question the adequacy of the allowance for doubtful debts that has been provided. Stock and debtors constitute 65 per cent of total company assets.

For each of the above audit clients, discuss the effect of the four circumstances on the audit opinion. You need to decide what opinion you would give.