The following is the audit report, except for the opinion paragraph, of Excelsior Products Ltd:

Independent Audit Report

To the Members

Excelsior Products Ltd

We have audited the financial report ... as set out on pages 13 to 19 ...

Basis for ...

Note 17 to the financial statements of the company states a value in respect of shares in other companies-Wyze Investments Company Ltd (an unlisted company) at cost $2 million. The accounts of that company as at 30 June 20X0 report significant losses on operations for the period ended on that date and a receiver was appointed by a secured creditor on 13 August 20X0.

The directors of this company have reported in the notes to these financial statements their views concerning refinancing, rehabilitation and the future operating prospects of Wyze Investments Company Ltd and their reasons for not effecting a write-down in this company's investment value in the current period.

We are of the opinion that, having regard to the present stage of implementation of rehabilitation proposals in respect of the company in which the investment is held, the valuation of the investment in the accounts of the company exceeds by $300 000 the amount which it would have been reasonable for the company to spend to acquire its existing asset at the end of the financial year.

In our opinion, a write-down of the investment of $300 000 should have been made and charged against the operating result of the period, reducing it from a profit of $175 000 to a loss of $125 000 and thus reducing share capital and reserves of $200 000 to a deficiency of $100 000.

REQUIRED

a. Should the audit opinion in this case be unmodified, unmodified with an emphasis of matter, qualified, adverse, or a disclaimer of opinion?

b. Assuming the audit was completed on 12 September 20X0, write the opinion paragraph for this audit report.