Ten (10) independent situations are included for which you must indicate the appropriate audit report type: a) Indicate the condition (whether change in accounting principle, non-compliance with GAAP, none, reports involving other auditors, or the scope of the audit has been restricted. b) Indicate the type of opinion in the audit report. (See listing below for your reference) c) In the comments column, describe the situation why you conclude that type of opinion, whether materiality, using an accounting method that is not GAAP, etc. d) The listings are for your reference. You can repeat if necessary or indude an option that is not included. Condition No disclosure in finandial statements Cient imposed scope limitation Scope limitation, alternathe procedure Departure from GAAP Change in ertimate Other auditors responsibility: Loss contingency Subsequent events Accounting principles not consistenthy applice. Correction of material misstatement in previously issied F/s. Emphasis of a matter Uncertainties-going concern Type of Opinion Unqualified - standard opinion Unqualified with emphasis paragraph Unqualified whth additional information in opinion and responstbility Unqualfied with additional related information Qualified Adverse Disdainer Normal Styles tvents Example: A company has not followed generally accepted accounting principles in recording its investments. Condition: Deviation from GAAP - The degree of materiality and whether it is pervasive to the financial statements or notes is not indicated. Type of Opinion and Modification: Qualified or Adverse Comments: It depends on the degree of materiality. The degree of materiality or whether it is pervasive to the financial statements or notes is not indicated. 1. The cfient loventos, Inc. is issuing 2 years of comparative financial statements. The first year it was audited by another auditor who is asked to reissue his audit report. (Response to successor auditor's report). Condition: Type of opinion and modification: Comments: 2. On January 2, 2023, Tousted Bread, Inc. received notice from its primary supplier that, elfective inmediately, all wholesale prices will increase by 10 percent. Based on the notice, Pan Tostailo, Ine, revalued its December 31, 2022 imentory to rellect hipher costs. Imventory constituted a sigaificant proportion of total assets; Honeves, the effect of revaluation was sienilicant for current assets, but not for totel assets or net income. The increase in waluation is appropriately inticated in the footnotes. Condition: Type of opinion and modificatipn: formmerta: 3. A company valued its inventory at current replacement cost. Although the auditor believes that inventory costs approximate replacement costs, these costs do not approximate any GAAP inventory valuation method. Condition: Type of opinion and modification: Comments: 4. A customer changed its deproxistion method for production equipment from stroight line to a units of production method based on hesis of use. The ouditor does not agree with the change. Condition: Type of ophinion and modifiertion: Styles ,1,,,2,,,,,,,,, 5. A client changed the method it uses to calculate post-employment benefits from one acceptable method to another. The effect of the change is irrelevant this year, but is expected to be in the future. Condition: Type of opinion and modification: Comments: 6. An auditor reporting on the group financial statements decides not to assume responsibility for the work of a component auditor who audited a 70x owned subsidiary and lissued an unqualified opinion. The total assets and income of the subsidfary are 5% and 8%, respectively. of the total assets and incorne of the audited entity. Condition: Type of opinion and modification: Comments: 7. An auditor discovered that a client made illegal political bribes to a Puerto Rico gubernatoria! candidate. The cuditur was unable to determine that the amornts associated with the parments due to the clent's inadequate recond retention policies, athough there is no fikelihood that the financial statements ate misstated, may be materially misstated. The client refures to disalose the payments in a note to the finandial statements. Condition: Type of opinion and modification: Comments: 6. Acfient is isuire 2 vears of comparative flanucial stotements. The first vear it was audited by 8. A client is issuing 2 years of comparative financial statements. The first year it was audited by another auditor who is not asked to reissue his audit report. (Response to successor auditor's report). Condition: Type of opinion and modification: Comments: 9. Heavy Lotions, Inc, is an online retailer of body lotions and other bath and body items. The company records revenue at the time customer orders are plaked on the website, rather than when the products are shipped, which is typically tuo dus after theorder is placed. The auditor determined that the number of orders placed but not shipped as of the balance sheet date is not sienificant: Contition: Type of opinion and modification: Connments: 10. During the audit of Dream Toum a new dience in the lank-term investunent account the 10. During the audit of Dream Team, a new client, in the long-term investment account the auditor finds that there is a large contingent liability that is important for the consolidated company. It is fikely that this contingent liability will be resolved with a material loss in the future, but the amount is not estimable. Although no adfusting entry has been made, the client has provided a note to the financial statements that describes the matter in detai. Condition: Type of opinion and modification: Comments