QUESTION 29 For each situation below, indicate the opinion that should be given Discuss any changes from the standard audit report that are necessary because of the situation or change in opinion (indicato if no chances are necessary) Letter your answers appropriately (15 points) a The auditor has substantial doubt about the client's ability to remain in business for another your Management has provided adequate disclosure and has followed WP The auditor would like to point out his conclusions to the reader b The client has changed from the LIFO method for accounting for inventory to the FIFO method Management has adequately disclosed this change, and the mediteres that the change better reflects the amounts in the client's inventory account The client has failed to record an allowance for doubtful accounts. Accounts receivable are a material to the financial statements. No other probloms with the financial statements were found C d The client uses an accounting principle for a class of transactions that is not acceptable under current GMP Because of this departure, misstatements in a major portion o accounts are significant That auditor is unable to observe the client's inventory count because the firm was hired after the client's fiscal year ended Inventory is a material account. The cont's accounting records are sufficient for the auditor to determine through other procedures that inventory is fairly stated