The following extract was reported by The Sun on May 9, 2013:

On May7, 2013, HB Globals external auditors had said in the course of its audit it was unable to satisfactorily and independently substantiate the bank balance of a subsidiary amounting to RMB249.63 million as at Dec 31, 2012.

In addition, we were not able to receive independent confirmations on majority of the trade receivables and trade payables that were circularized; these balances represented 56% of trade receivables and 48% of trade payables as at Dec 31 2012, said Paul Wan & Co

REQUIRED

Explain to the management the four (4) types of audit opinion, and Present to the management the type of audit opinion will be issued in light of the circumstances reported in the above case (25 Marks)