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Q2. (9 Points) You are the partner in charge of the 2021 audit of ABC Corporation. The audit report has not yet been prepared. In

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Q2. (9 Points) You are the partner in charge of the 2021 audit of ABC Corporation. The audit report has not yet been prepared. In each independent situation following (1-5), indicate the appropriate action (-1) to be taken. The possible actions are as follows: a. Issue an unmodified opinion audit report h. Issue an unmodified opinion with an explanatory paragraph. c.Issue an unmodified opinion with modified wording. d. Issue qualified opinion. e. Issue an adverse opinion. Disclaim an opinion Situation Type of Report You were unable to confirm accounts receivable with ABC's customers. However, because of detailed sales and cash receipts records, you were able to perform reliable alternative audit procedures. 2. 20 days before the end of fieldwork, you discover that the audit manager on the ABC engagement owns a material amount of ABC's common stock. 3. ABC Corporation has changed from straight line depreciation method to double declining balance depreciation. The effect on this year's income is immaterial, but the effect in future years may be highly material . The change is not disclosed in the footnotes # The principal auditor of ABC Corporation decides to refer to the work of another auditor, who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. 5. ABC Corporation carries its inventory accounts at current market values. Current market values exceed historical cost by a highly material amount, and the effects are pervasive throughout the financial statements. 6. During your audit of ABC Corporation you conclude that there is a possibility that inventory is materially overstated. The client refuses to allow you to expand the scope of your audit sufficiently to verify whether the balance is actually misstated

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