Teper and Lubetsky, Auditors, faced the following 4 (four) separate and un-related audit engagements: they are called SITUATION 1, SITUATION 2, SITUATION 3 and SITUATION 4. REQUIRED: Determine whether you would issue an Unqualified audit opinion or a Qualified audit opinion: if Qualified, specify what kind of Qualified audit opinion. Ensure you describe the reasons WHY you made this choice. SITUATION 1: Aldershot Corporation: The audit firm of Teper and Lubetsky was engaged by Aldershot to perform a financial statement audit for the recently completed year. Michele Teper (the audit partner) communicated her disagreement with Aldershot management regarding their use of the LIFO (Last In, First Out) method of inventory valuation which is not in accordance with GAAP Michele Teper believes that the impact of the misstatement is both material and pervasive. SITUATION 2: Banerjee Incorporated: The audit firm of Teper and Lubetsky was engaged by Banerjee to perform a financial statement audit for the recently completed year, None of the auditor staff from Teper and Lubetsky was present when the inventory count was taken by Banerjee staff. Also, the audit team was not able to verify the inventory balance by any other means which was documented in the audit file. Michele Teper, the audit partner does pot consider this to cause a pervasive error throughout the financial statements. SITUATION 2: Banerjee Incorporated: The audit firm of Teper and Lubetsky was engaged by Banerjee to perform a financial statement audit for the recently completed year. None of the auditor staff from Teper and Lubetsky was present when the inventory count was taken by Banerjee staff. Also, the audit team was not able to verify the inventory balance by any other means which was documented in the audit file. Michele Teper, the audit partner, does not consider this to cause a pervasive error throughout the financial statements. SITUATION 3: Chow Inc.: The audit firm of Teper and Lubetsky was engaged by Chow to perform a financial statement audit for the recently completed year. Chow Inc. is a family owned business and the CEO did not like technology, preferring to trust "paper" records. Unfortunately, just before the audit engagement began, a flood at their Toronto office destroyed all of the accounting records. There were no backup records at all. SITUATION 4: Dunhao Incorporated: The audit firm of Teper and Lubetsky was engaged by Dunhao to perform a financial statement audit for the recently completed year. None of the audit staff from Teper and Lubetsky was in attendance when the inventory count was taken by Dunhao staff. Furthermore, confirmations were not used for clients found in the accounts receivable records. However, Michele Teper (the audit partner) approved the use of alternative auditing procedures and Michele was therefore satisfied with the results