You are the engagement partner for the following clients current year audit and all companies have a financial year end at 31 December 2019:

1. Fortune Company The notes to the financial statements disclose the following:

Since January 2019, the companys travel luggage is guaranteed to be free from defects in materials and workmanship under normal use within a 5-year guarantee period. No provision has been recognized as the amount of the obligation cannot be measured with sufficient reliability.

Sale of travel luggage for the current year was regarded as material.

2. Wealth Company The company has been expanding in the past few years and has incurred a huge amount of debt with a net current liability of $2.8 million in current year. Its banker was considering to cut the facilities provided as the company failed to pay interest on a number of occasions. The company sold its major product line in order to generate extra cash flows.

Despite of the above, you concluded that the companys use of going concern assumption is appropriate.

Required:

Suggest an appropriate auditors report to be prepared. Explain your reasons.