You are an audit manager and have to issue auditor reports on internal control over financial reporting for the following companies as required by PCAOB auditing standards: 1. Pleasant Luggage Company: This company manufactures high-end luggage. During the audit, there was a restriction on the scope of the audit of internal control over financial reporting and it was not possible to determine whether there were material weaknesses. 2. Queen Mining Company: This company operates a number of mines across the world and implemented a new system earlier this year. During the year, it faced some minor internal control-related issues that could be further enhanced to increase efficiency. 3. Ranger Supply Company: This company manufacturers stationery and accessories. The audit team identified a number of significant deficiencies in the internal controls over financial reporting. It is believed that internal control is unlikely to prevent or detect material misstatements on a timely basis. 4. System IT Company: This company is an IT solutions provider. The audit team conducted interim testing and identified a number of material weaknesses in internal controls, the results of which were communicated to the senior management. However, the management was able to remediate all the deficiencies only after year end. Required: 1. State the appropriate audit report on internal control over financial reporting for each of the above-mentioned four companies: A. Unqualified opinion on internal control over financial reporting. B. Qualified opinion on internal control over financial reporting. C. Adverse opinion on internal control over financial reporting. D. Disclaimer of opinion on internal control over financial reporting. 2. Assume that it is unlikely that the deficiency in Ranger Supply Company leads to material misstatements. Justify whether your answer will change. 3. Assume that the management of System IT Company was able to remediate all the deficiencies before year end and the auditors tested the revised controls with positive results. Justify whether your answer will change.