On February $28,2019,$ Stu & Dent, LLP completed the audit of ShyLO Ranch, Inc. $($a public company$)$ for the year ended December $31,2018.$ A recent fire destroyed the accounting records concerning the cost of ShyLO$$s livestock. These were the only records destroyed. The auditors are unable to obtain sufficient appropriate evidence concerning the cost of the livestock, which represents about $8\%$ of total assets. These are GAAP$-$based financial statements, and the auditors found no INTERNATIONAL PROFESSIONAL SKEPTICISM $19455\_$ch$15\_$hr$\_794-852.$indd $8421/22/187$:$26$ PM Review Questions and Short Cases $843$ other problems during the audit. The audit report is to cover the $2018$ financial statements only. The audit partner has indicated that a qualified opinion is more appropriate than an adverse opinion. Draft the opinion and basis of opinion paragraphs for the audit report.