Question 1 12 Marks (a) Explain the 'audit expectation gap? Why do you think auditors do not give users what they want? (3 Marks) (6) Explain the difference between an adverse opinion, a qualified opinion and a disclaimer of opinion. (6 Marks) Question 1 continued over next page Question 3 8 Marks A new client has been paying its suppliers late consistently - well in excess of the suppliers' agreed credit terms. As a result, some suppliers have begun demanding cash on delivery from the client. You are also aware that a review of correspondence between the new client and its banks reveals that the new client has been experiencing cash flow problems for two years. Required (a) Discuss whether there are any events or conditions that may cast significant doubt on the new client's ability to continue as a going concern. (4 marks) (b) List and explain this situation. alternative audit opinion options available to the auditor in (4 marks)