The Following are unrelated situations. For each situation outline the possible deviations (if any) from an unmodified auditor's report that may be necessary, and give reasons in the format. State any assumptions you make.

i. Rockwall Ltd. is a contruction company that builds and installs rock climbing walls in recreation parks. an architect does the design and three different small construction companies are used to build the wall. You are concerned that some of the projects that span the February year-end may result in material losses, even though income has been reported in the coming year. Management has refused permission for you to enter construction sites, as they feel that the construction sites will be dangerous and they do not want to be exposed to such liability.

ii.) Three and 1/2 weeks after year-end date, a major customer of King Construction Co. declared bankruptcy. Because the customer had confirmed the balance due to King at the balance sheet date management refuses to charge off the account or otherwise disclose the information. The receivable represents approximately 10% of accounts receivable and 20% of net earnings before taxes.

iii.) You are auditing Far East Mattress Inc. for the first time. Far East has been in business for several years but has never had an audit before. After the audit is completed, you conclude that the current year balance sheet, including inventory is stated correctly in accordance with ASPE. There has been no work performed on opening inventory.

iiii.) Save the Whaless is a charitable organization devoted to preserving whale species. Fundraising is handled primary by means of electronic mail and door to door canvassing by volunteers, Canvassing volunteers provide receipts at the door using pre-numbered receipts. Donors who give money by email are sent receipts by email.

Format:

Condition: Materiality Level: Type of Report: Comments:

Example Failure to Material (Not Qualified opinion

Follow GAAP pervasive)