Which of the five balance-related audit objectives is the auditor testing in the following procedure? "Comparing the cost of a sample of inventory items to the price they can be sold for, less any selling costs, (i.e. commissions, shipping costs)". Allocation Accuracy Rights & Obligations Valuation Which audit opinion (audit report) would be the most appropriate in the following case? You are auditing ABC Co. for the first time. ABC Co. has been in business for several years but has never had an audit before. The company has decided to convert to IFRS standards from its ASPE prepared financial statements since it decided to go public next year. After the audit is completed, you conclude that the current year balance sheet is stated correctly in accordance with IFRS. The client did not authorize you to do test work for any of the previous years. Adverse Disclaimer of opinion Unmodified/Unqualified Modified/Qualified Which audit opinion (audit report) would be the most appropriate in the following case? Four weeks after the year-end date, a major customer of Delta Farm Inc. declared bankruptcy. Because the customer had confirmed the balance due to Delta at the balance sheet date, management refuses to write off the account and disclose the information. The receivable represents approximately 10% of accounts receivable, 20% of net earnings before taxes and could materially impact the value of inventory since the customer maintained a large value of inventory on consignment. You decide that this could have a material and pervasive affect on the financial statements. Modified/Qualified - Scope restriction Unmodified/Unqualified Adverse Unmodified/Unqualified with an emphasis of matter paragraph Which audit opinion (audit report) would be the most appropriate in the following case? "A different public accounting firm which you had selected, performed approximately 20% of the audit for Fuartany Publishing Inc. You have reviewed its working papers and believe it did an excellent job on its portion of the audit. Nevertheless, you are unwilling to take complete responsibility for its work". Disclaimer of opinion Adverse Modified/Qualified - Scope restriction Unmodified/Unqualified