Question $2$

The following are independent and material situations:

a$.$ An auditor is engaged to audit a client$$s financial statements after the annual physical inventory count. The accounting records are not sufficiently reliable to enable the auditor to become satisfied as to the year$-$end inventory balances.

b$.$ The client changes its method of accounting for the cost of inventories from FIFO to weighted average. The auditor does not agree with the change. Furthermore, it has a material effect on the financial statements and has not been disclosed.

c$.$ The client fails to record an immaterial amount of prepaid insurance as an asset.

d$.$ There is substantial doubt about the client's ability to continue as a going concern.

Required: For each of the above situations you are required to indicate the type of audit opinion you would issue and explain your reasons.