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Question 1 For the following independent situations, assume that you are the audit partner on the engagement: 1. You are auditing DCS for the first time. Deep Clean has been in business for several years but over the last two years has struggled to stay afloat given the economic conditions. Based on your audit work, you have substantial doubt that DCS will be in business by the end of its next fiscal year. 2. During your audit of R. Inc., you conclude that there is a possibility that inventory is materially overstated. The client refuses to allow you to expand the scope of your audit sufficiently to verify whether the balance is actually misstated. 3. You complete the audit of 'M' Store, and in your opinion, the financial statements are fairly presented. On the last day of the audit, you discover that one of your supervisors assigned to the audit has a material investment in 'M' Store. For each situation, do the following: a) Identify which of the conditions requiring a deviation from a standard unmodified opinion audit report is applicable, if any. b) State the level of materiality as immaterial, material, or highly material. If you cannot decide the level of materiality, state the additional information needed to make a decision. c) Given your answers in parts a. and b., state the type of audit report that should be issued. If you have not decided on one level of materiality in part b., state the appropriate report for each alternative materiality level