1. How will switching from fifo to lifo for inventory valuation affect financial analysis of liquidity and profitability? Cite two ratios that will be affected and indicate how they will change. (Assume an inflationary condition).
2. Identify the four different types of Auditor’s Opinions that might be made on a company’s financial statements. Discuss which opinion management would most likely want on their financial reporting. Discuss management’s options in a case where any opinion they do not find desirable may be issued.