particular ASA705 and ASA706 describe the types of modified audit opinions to be given in various situations. All of the following situations are considered material.

1. a)You are the external auditor of AMV Ltd, a manufacturing company, whose financial year ended on 30 June 2012. As part of the audit process, you requested to visit one of the company's overseas factories. Your request was rejected by management citing safety concerns. The factory in question produces 65 per cent of AMV's inventory.
2. b)You are the auditor of ZOH Ltd, a manufacturing company. For the financial year ended 30 June 2012, ZOH changed its inventory recording method from First-In-First-Out (FIFO) to Weighted Average. Management argued that the change was necessary to better reflect its product cost. You noted that both methods are allowed under Australian Accounting Standards but were concerned that this has something to do with improving the company's profit figure.
3. c)You are the auditor of MLT Ltd, a manufacturing company. For the financial year ended 30 June 2012, MLT included in its financial statements revenue of $46 million. Upon close inspection, you found that $20 million related to a sale contract that was still being negotiated. Management assured you that the contract would be signed shortly and the first payment would soon be received by MLT.
4. d)You are the auditor of XTK Ltd, a manufacturing company. For the financial year ended 30 June 2012, management adopted a new accounting standard in preparing its financial statements. The new accounting standard is scheduled to become effective on 1st July 2013. As a result of the early adoption of the new standard, XTK's profit went up by $12 million.
5. e)You are the auditor of North Coast Local Council. For the financial year ended 30 June 2012, North Coast included in its financial statements a provision for future expenditure of $15 million. North Coast argued that as funding from the government continues to decrease, it should set aside money to be spent in the future. Australian Accounting Standards prohibits the creation of a provision for future expenditure unless certain conditions are met. North Coast did not meet those conditions.

Required:

Taking each of the preceding material situations separately, select which form of opinion you would consider the most appropriate to use. Give reasons.