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may include in their independent auditor's report. Select one of the scenarios below and identify which opinion you would likely issue at the end of the audit engagement based on the facts below. Additionally, consider if any addition paragraphs/sections need to be included in the independent auditor's report, or if there are additional impacts the auditor may need to consider. 1) Scenario 1 - You as the auditor have identified a material misstatement within the Accounts Payable balance, as your client has not recorded the amount affiliated with a purchase which was made with one of their vendors, which was FOB Shipping. Through inquiry with management, you learn that they have been notified on January 2 that the goods were shipped from the vendor on December 30. Your client has a December 31 year-end. You have brought the amount to management to correct the issue, increasing A/P to the correct amount; however, management of your audit client refuses to adjust the A/P balance as they believe they should not record the liability as they have not yet received the goods as at year-end. 2) Scenario 2 - You as the auditor have asked management of your audit client to provide you with a number of documents as evidence to support the audit procedures you are performing as a part of your audit engagement. Unfortunately, due to a flood in the company's corporate office where all of their documentation was stored, they are unable to provide you with any documentation that you've requested relating to the inventory account. You are able to perform some of the planned audit procedures over the other in-scope areas but the majority of the procedures you were intending on testing relating to the inventory balance, the evidence no longer exists

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