The correct answers are:

• The auditors are unable to form an opinion on the inventory figure in the financial statements because of very poor records.

• The auditors disagree with the non-allowance for a particular debt as doubtful.

• The auditors consider that an accounting policy adopted by the company is not in accordance with accounting standards.

Where the auditors are unable to form an opinion on the inventory figure in the financial statements because of very poor records, or where they disagree with the non-allowance for a particular debt as doubtful, or where they consider that an accounting policy adopted by the company is not in accordance with accounting standards, a qualified opinion will be issued.

Where the auditors consider that there is significant uncertainty about the ability of the company to continue as a going concern, but the matter has been properly disclosed in the financial statements, they may draw attention to it in their audit report by including an emphasis of matter paragraph but the opinion itself remains unmodified.