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| On March 1, Green, CPA, expressed an unmodified (unqualified) opinion on the financial statements of Ajax Co. On July 1, Green’s internal inspection program discovered that engagement personnel failed to observe Ajax’s physical inventory. Green believes that this omission impairs Green’s ability to support the unmodified opinion. If Ajax’s creditors are currently relying on Green’s opinion, Green should first A. Advise Ajax’s board of directors to disclose this development in its next interim report. B. Reissue Green’s auditor’s report with an explanatory paragraph describing the departure from GAAS. C. Request Ajax’s management to communicate to its creditors that Green’s opinion should not be relied on. D. Undertake to apply the alternative procedures that would provide a satisfactory basis for Green’s opinion. |