What audit report "opinion" would the auditor provide in the following situations? (2 marks) You are ready to complete the audit of Reply Supplies Ltd. and provide your audit report but management refuses to change its valuation of inventory to the lower of cost or net realizable value, which would materially lower its value on the balance sheet. Management's reasoning is that the value of the inventory items that are currently recorded below net realizable value and causing the material change to the inventory value will soon rebound to the higher price as soon as the demand picks up again in the next few months. You cannot gather enough information on the demand to determine one way or the other. Disclaimer of Opinion Qualified - Scope Restriction Unqualified Qualified - GAAP Departure What audit report "opinion" would the auditor provide in the following situation? (2 marks) At the conclusion of your audit you, PA, review your schedule of all the unadjusted misstatements discovered and conclude that the financial statements are materially and pervasively affected. In fact the small profit currently showing on the unadjusted income statement will turn into a substantial loss once the adjustments are made. Qualified - Scope Restriction Adverse Qualified - GAAP Departure Unqualified - Emphasis of Matter Which document (Letter) provided to management by the auditor indicates inefficiencies in internal controls that management should consider fixing before the next audit? Resignation Letter Management Letter Representation Letter Engagement Letter What are the two audit procedures performed in a review engagement? (2 marks) Inspection and Observation Inquiry and Recalculation Reperformance and External Confirmation Analytical Procedures and Inquiry