Q1) Pastrami operates four Italian "take away" shops. Inventory amounts to 15% of the company's total assets at the reporting date. Management performed a full year-end inventory count but did not allow the auditor to attend. The auditor has been unable to perform alternative procedures regarding the completeness and existence of inventory.

Which of the following audit opinions should be issued?

Disclaimer of opinion as the matter is pervasive

Unmodified with an emphasis of matter paragraph

Qualified 'except for' a material misstatement

Qualified 'except for' an inability to obtain sufficient evidence

Q2) Which of the following are subsequent events in accordance with ISA 560 Subsequent Events?

(i) Events during the reporting period that are material to the prior period's financial statements

(ii) All events that provide evidence of conditions that existed at the reporting date

(iii) Events occurring between the reporting date and the date of the auditors report

(iv) Facts that become known after the date of the auditors report

(i) and (ii)

(i) and (iv)

(ii) and (iii)

(iii) and (iv)