Q1 (a) (b) Please explain which of the audit opinion is more suitable in each of following scenarios: During the audit, auditors identified that effective controls are developed by 6 the organization, however during test of control it was observed that these control are not implemented effectively, as a result inventory is over reported comprehensively, fixed assets cannot be matched with fixed asset register, credit sales and debtors cannot be reconciled. All these matters are pervasive and have major impact on financial statements. ABC Limited is cement factory having year end June 30th. On 3rd July due to 6 fire in head office whole physical record was burnt. Management of ABC Limited recovered financial data from back up and provided auditors all system generated vouchers, GLs and Trial balance, further ERP have all copies of invoices and other required documents which are required by auditor to draw opinion on financial statements. Factory and operation and financial documents of ABC company are in 6 Afghanistan whereas head office is in Pakistan. Accordingly, auditors are appointed in Pakistan but auditor were not allowed to travel to Afghanistan due to law and order situation. (c)