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Part A. Audit Reports For each of the following circumstances, provide the appropriate audit report. A Number each report same page of the report Present

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Part A. Audit Reports For each of the following circumstances, provide the appropriate audit report. A Number each report same page of the report Present all elements of the report including your signature and indicate the type of report (i.e. qualified- scope limitation) on the B Underline or bold the parts of the reports that differ from the standard unqualified audit report. All audit reports cover two years unless indicated. Your audit report should be dated March 22, 2019 (you can assume we are reporting on the 2018 fiscal year). C. Prepare reports and label "Report A-Independent Auditor's Reports" or "Report B-Report of Independent Registered Public Accounting Firm." Prepare the following reports using the (Report A) or (Report B) format as indicated 6. The EarningsGone Company disclosed in Note 16 that the financial statements reported all of its sales on the installment method for financial statement purposes and its tax return. GAAP requires that sales be reported on the accrual basis with an appropriate provision for deferred taxes. Gross profit on sales is understated by $5,000,000 and income taxes is understated by $2,000,000. The total effect on retained earnings is $1.500,000 which results in an increase in earnings per share of $2 These effects on earnings amount to a 75% increase in reported earnings and the financial statements taken as a whole are judged to be misleading (Report B) 7. The Endless Company discussed in Note 17 that they were a defendant in a lawsuit alleging infringement of certain patent rights and claiming royalties and punitive damages. The company has filed a counteraction, and preliminary hearings and discovery proceedings on both actions are in progress. The ultimate outcome of the litigation cannot presently be determined. The company disclosed the lawsuit but made no provision for the liability. The amount represents twenty percent of the company's equity for 2018. The auditor decides that the likelihood is closer to "possible than "remote. (Report A

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