Scenario 1 The auditor has determined that the inventory balance is overstated by $50,000, and the client has chosen not to adjust for the misstatement. The overall materiality threshold for the audit is $45,000. There are no other uncorrected misstatements. Scenario 2 The client's management has refused to provide supporting documentation for the acquisition of a competitor during the year. The client has a controlling interest in the competitor and this interest is material. Required: For each scenario, state which audit opinion should be given and explain why you have made this choice