Matching Exercise $17-1($Static$)($LO $17-3,17-4]$For each of the following situations Indicate the appropriate type of auditors' report, both when the situation Is "material" and when It is$"$materlal and pervaslve." Select $"$An unmodified opinlon with an additional paragraph $($e$.$g$.,$ emphasis of a matter paragraph$)"$ onlywhen the professlonal standards require such a report$\mathrm{.}3$SituationThe financial statements contain a departure from generally acceptedaccounting principles.The financial statements reflect a change from one generally accounting$2$ principles to another generally accepted accounting principle. The auditorconsiders the new principle preferable to the previous one$\mathrm{.}5$The auditors wish to ernphasize in the report a subsequent eventdesaribed in the notes to the financial statementsAThe scope of the auditors examination is restricted and the auditor is notable to effectively apply other proceduresThe scope of the auditors' examination is restricted and the auditor isable effectively to apply other procedures.The financial statements reflect a change from one generally accounting$6$principles to another generally accepted accounting principle. The auditordoes not consider the new principle preferable to the previous one.Inventory is valued at sales prices which the auditors find, althoughreasonable, different fron the lower of cost or market valuation system.Substantial doubt about the dient's ability to continue as a going concernexist. This substantial doubt is properly disdosed in the financialstatement notes. The auditor will not issue a disclaimer of opinion.Substantial doubt about the client's ablity to Continue as a gon$9$ cocemstatement no$$es$.$ The auditor wll not issue a disclaimer of opinion.ncial$4$nThe company changed the lives of some of its fixed assets$--$the auditorMaterialMaterial and Pervasive