There are three parts to this question (A, B, & C). You must answer all three parts. Analyze each of the following independent situations, and write the appropriate audit opinion/report that should be issued.

A. The management of RAMI Corporation has decided to exclude the statement of cash flows from its financial statements because it believes that its bankers do not find the statement to be very useful.

B. During the audit of Khalid's bakery the auditor found that a material amount of inventory had been excluded from the company,s financial statements, after discussing the matter with management the auditor becomes convinced that it was an unintentional oversight (mistake or error). Management appropriately corrects the error before the auditor has completed his fieldwork.

C. Handsome Brothers LLC leases its manufacturing facility from a partnership controlled by the Chief Executive Officer and a major shareholder of Handsome Bothers. The auditor finds that the rental on the lease is much higher than on similar buildings in the area. The company refuses to disclose this related party transaction in the footnotes.