imformation. It will impair her independence. Inventory system became corrupted, records for 3 months of transactions were lost. Bu inventory and profit numbers are up. / Elle doubts mike might be trying to manipulate the financial records. If system problem was unintentional, and she can not find an alternative, they will get qualified audit opinion as it is a scope limitation. If they can find alternative evidence to support the year-end number, an unmodified audit opinion might be given. The term qualified is used in a special way by auditors. To them, it means that the auditor's opinion on the reliability of the financial statements is restricted or limited in some way. Hem, in this case. It is restricted by an inability to find all the records that th auditor may need to be reasonably sure a material misstatement is not present. EcoPak's systems are rally inadequate for the volume o business, the company is not auditable at this time. Ella suggested Kam and Mike to set up appropriate business processes by bringing in IT consultants. It is crucial to have a reliable information system, and internal controls. For this year, Ella can do a review engagement. Such type of review provides only moderate assurance, not high assurance, like an audit. It requires less evidence than a audit. This can give Ella a good basis for starting the audit in the following year, as by