You are a newly appointed partner in the audit firm where you have been working from the past ten years. This year, the audit firm was engaged to audit the year-end accounts and tax returns of Younous Company, a relatively new company located in Nizwa. Younous Company is engaged in online shopping business that sells all sorts of women products clothes, shoes, make-up and accessories. They also design and produce their own clothes line but outsource the other products like shoes, make-up and accessories from third parties. During the course of the audit, your team became aware of an unusual practice being observed by the employees. You discovered that when end of year is near, production staff will produce more products than usual but sales of these products will not be recorded in the accounting system. This practice is authorized by production and sales managers to avoid taxation problems. As you call the management attention about this practice, they argued that proceeds from these sales dont go to their own pockets but are used for marketing expenses of the directors when they travel to other countries to find new suppliers and customers and attend fashion shows to get new designs for their products. Required: Explain your answer to the following questions: 1. Based on the given situation, write your reasons if the auditor can form his opinion on the financial statements? Formulate your answer based on ISA 200 and ISA 700 concepts. 2. What are the key decision points that could be obtained by the auditor from the case in forming his opinion? Determine the appropriate auditors opinion to be included in the auditors report whether Unmodified Opinion or Modified Opinion. Justify your decision.