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ICFR Reporting Consider the following situations: a. KV Incorporated acquired LW Company during 2012. KV's report on ICFR was prepared without an assessment of LW's ICFR. LW represents 1.7% of KV's consolidated assets and .7% of KV's consolidated pre-tax income. b. Jones Corp management evaluates its ICFR based on its own internally developed criteria. c. Howard Electric Inc. evaluates its ICFR based on the Trumbull report's internal control guidance. d. The auditor identifies a significant deficiency. Management's report on ICFR does not discuss this deficiency. e. During its evaluation of ICFR, the management of MKB Manufacturing identifies a material weakness. Management describes this weakness in detail in its report on ICFR and the auditor agrees with management assessment. f. The auditor identifies several ICFR deficiencies, but the probability of a material misstatement due to these deficiencies is remote. g. The auditor identifies a material weakness, but management disagrees with the auditor's conclusion and refuses to modify its report on ICFR. h. Approximately 35% of KLM Company's sales are on credit. KLM's auditor is unable to test controls related to KLM's allowance for doubtful accounts. However, the auditor is satisfied that there are no material weaknesses in ICFR related to any other areas of the financial statements. i. Main Paper Corporation's auditor does not identify any material weaknesses during its audit of the company's ICFR. For the audit of the financial statements, the auditor assesses tolerable misstatement to be $100,000. While auditing inventory, the auditor discovers that errors in made during year-end inventory counts at several of the company's retail locations accumulated to about $92,000. The auditor concluded that this misstatement is not material. j. During its evaluation of ICFR, Reno Financial Services, Inc. identifies a material weakness related to accounting for capital leases. Reno acknowledges the material weakness in management's report on internal controls but describes it in vague terms. The auditor agrees with management's assessment that a material weakness exists. Refer to the reporting requirements in PCAOB Auditing Standard 5 or other audit guidance. For each situation above: 1. Indicate what type of internal control audit opinion is required by PCAOB auditing standards (using shorthand language such as: qualified, disclaim opinion, extra paragraph indicating ___, etc.) or indicate that an unqualified opinion is allowed. 2. Also, indicate any other communications the auditor should make (inform audit committee, etc.) 2