auditing concepts

I need help on this paper.  Below is the information needed

Kobyashi Moru reports its inventory, fixed assets, depreciation and cost of goods sold on a current value basis (fair market value on the date of the financial statements).

Such accounting violates the cost principle of US GAAP. There is a disclosure of the pertinent facts stating this in a footnote on the key financial statements.

What factors as the auditor of record, should you consider in deciding whether to issue a qualified or an adverse opinion in your final audit report?

Prepare the following paragraphs that include the appropriate language.

1. A qualified opinion
2. An adverse opinion