For each ofthe independent situations presented below, state what type of audit report should be issued. Briefly explain your rationale. (Hint: include a discussion of the effect materiality might have on the type of audit report to be issued). 1.}Grinner and Greeter, CA3, were engaged to perform an audit of the financial statements of Happy, Inc. The management of Happy would not allow Grinner and Greeter to confirm any of the accounts receivable. All other audit prot::e.:lures were performed as considered necessary by Grinner and Greater and no other problems were discovered. However, Grinner and Greeter were unable to satisfy themselves as to the balance in accounts receivable. 2.t3larke and Ryan, CPI-ts, were engaged to perform an audit ofthe financial statements of lt-iliK Co. The client has a pending lawsuit against them. Management has provided adequate disclosure of the lawsuit. However, the response letter from the clients lawyer indicates that it is likely that the company will need to pay between $150,000 and $250,000 to settle the suit. Amounts have not been accrued