This part requires you to explain the main requirements of ASA700 Forming an Opinion and Reporting on a Financial Report and to outline the different types of audit opinions that may be provided in the Auditors Report and the circumstances leading to the expression of the different types of Audit OpinionsPart BThis part requires you to consider the following situations and state which type of Audit Opinionyou would offer in each providing a reason/explanation for each one.Assume that any weaknessesare material .(a)The Connor company has been having paying its debts during the last financial year and has been relying on its bank overdraft to pay debts . It has just been advised that the bank want repayment of the bank overdraft within one month. All other efforts to obtain finance have been unsuccessful as its cash flow does not cover its debts.(b)A local company has an American parent company and so it uses the same inventory valuation method of LIFO instead of FIFO. The difference between LIFO and FIFO has been calculated and itseffects calculated and while material are limited to their effect on the Inventory and do not have a material effect on the rest of the financial statements.(c)The Victorian Manufacturing company manufactures prefabricated concrete in its factories It includes its factories in the balance sheet at market value less accumulated depreciation.The Factory in Melbourne is included in the balance sheet based on a valuation carried out five yearsago .The directors have not asked for another valuation because they have believed that the marketvalues have remained fairly stable over the past five years. Question 2 Internal Control SystemsThe Adel Manufacturing Company employs about sixty production workers and has the following payroll procedures. The factory foreman interviews applicants alone and on the basis of the interview either hires or rejects the applicants.When the applicant is hired he/she prepares an income tax instalment declaration form and gives it to the foreman.The foreman manually writes the hourly rate of pay for the new employee in the corner of the form and then gives the form to a payroll clerk as notice that the worker has been employed.The foreman verbally advises the payroll department of pay rate adjustments .A supply of blank timesheets is kept in a box near the entrance to the factory.Each worker takes a timesheet on Monday morning ,fills in their name and notes in pencil on the timesheet his/her daily arrival and departure times.At the end of the week,the workers drops the timesheets in a box near the door to the factory .The completed timesheets are taken from the box on Monday morning by a payroll clerk. Two payroll clerks divide the cards alphabetically between them with one taking the A to L section of the payroll and the taking the M to Z section of the payroll .Each clerk is fully responsible for her sectionof the payroll .She computes the gross pay,deductions ,and net pay,posts the details to the employee's earnings records and prepares and numbers the payroll cheques. Employees are automatically removed from the payroll when they fail to turn in a timesheet.The payroll cheques are manually signed by the chief accountant and given to the foreman.Theforeman distributes the cheques to the workers in the factory and arranges for the delivery of the cheques to the workers who are absent . The payroll bank account is reconciled by the chief accountant , who also prepares the various monthly payroll tax reports. Required:(a) Identify the internal control weaknesses in the Adel Company's procedures.(b)Identify a test of control for each of the errors identified in part (a)