Select from the option list provided the appropriate opinion that most likely would be expressed for each of the following independent situations involving an audit of a non$-$issuer.

$$ Adverse

$$ Disclaimer

$$ Qualified

$$ Unmodified

Situation Opinion

$1.$ A company's customer sued it for damages. Management believes and the auditor is satisfied that a material loss probably will occur when pending litigation is resolved. Management is unable to make a reasonable estimate of the amount of range of the potential loss. The client fully disclosed the situation in the notes to the financial statements, but no accrual was made.

$2.$ The only scope limitation and reporting problem during the current$-$year audit of the balance sheet only was that the auditor did not observe a client's taking of beginning physical inventory and was unable to become satisfied about the inventory by means of other auditing procedures.

$3.$ A company, $70\%$ of whose assets and $55\%$ of whose revenues arise from subsidiaries, reports in the financial statements its investment in subsidiaries in accordance with the cost method.

$4.$ The chief executive officer is unwilling to sign the management representation letter.

$5.$ An issuer refuses to include in its audited financial statements some operating segments information that the auditor believes is required. The missing information is considered to be material, but its possible effects are not pervasive.

$6.$ The auditor was not able to confirm receivables at year end but was able to become satisfied that the receivables were fairly stated by other auditing procedures.

$7.$ The auditor concludes that revenues are overstated and the misstatements are pervasive to the financial statements.

$8.$ The auditor employs a specialist to help gather evidence as to the value of derivatives held by the client. The specialist's findings support managements' reported values.