Scenario: You are the audit partner at Preston & Associates and are responsible for the audits of the following three independent entities for the year ended 30 June 2020: 1. One of your clients, FFCs sales have declined over the last couple of years, FFC's bank Is still confident about the company's future profitability and financial stability, and on 23 July 2020, FFC renegotiated its current bank overdraft facility. The new facility provides for the relaxation of the debt covenants, a reduction of the charge over accounts receivable from 100 per cent to 75 per cent and a reduction in the interest rate by 1 per cent. The new overdraft facility will significantly improve FFC's financial flexibility, as well as reduce its future costs of borrowing. However, the CFO has stated that it is unnecessary to include details of this event in the financial report since the renegotiation occurred after the reporting date. 2. Due to losses and adverse key financial ratios, an auditor has substantial doubt about a client's ability to continue as a going concern for a reasonable period of time. The client has adequately disclosed its financial difficulties in a note to its financial report, which do not include any adjustments that might result from the outcome of this uncertainty. 3. You are now reviewing the preliminary information of your client Door & Windows Ltd and the Chairman's review operation note the following statement: the directors are of the opinion that the economic conditions currently facing Doors & Windows Ltd will soon abate, and closure of additional manufacturing facilities will be unnecessary. You're quite surprised as your discussion with management have indicated that closure of two further factories is imminent. In addition, the financial report included large provision for the redundancies. You approach the CEO with your concern and he replies - "Don't worry it's only a first draft and auditors don't report on that. 4. You are the auditor of a consolidated entity a significant component of whose accounting records have been seized indefinitely by government authorities.

PART A) For the first scenario state the type of audit report that you should issue and give reasons for your answer in not more than 5 lines (6 marks) - (as a guide, your answer should be minimum approximately 7 rows to adequately address the question)

PART B) For the Second scenario state the type of audit report that you should issue and give reasons for your answer in not more than 5 lines (6 marks) (as a guide, your answer should be minimum approximately 7 rows to adequately address the question)

PART C) For the third scenario state the type of audit report that you should issue and give reasons for your answer in not more than 3 lines (6 marks) S a guide, your answer should be minimum approximately 7 rows to adequately address the question)

PART D) For the fourth scenario state the type of audit report that you should issue and give reasons for your answer in not more than 3 lines (6 marks) a guide, your answer should be minimum approximately 7 rows to adequately address the question)