Wang and Partners has finished its external audit of Basia Mining Company. Basia has been in operation for only 2 years and trades in minerals. The auditors have one area of concern. Correspondence in the clients files indicates that the client is contingently liable for $1,000,000 for an environmental problem that occurred in a mine at one of its foreign joint venture operations with another company.

Required:

For each of the following independent situations, briefly explain which audit opinion(s) would be appropriate in the circumstances. Explain your reasoning. Be very specific in explaining the WHAT and the WHY.