Mafah Distribution Limited Has Requested That the Audited Financial Statements

question 31

Multiple Choice

Mafah Distribution Limited has requested that the audited financial statements be completed by January 5,five days after the December 31 year-end.This means that the auditor will be unable to verify subsequent payments on accounts receivable and will be unable to determine whether accounts payable have been set up correctly.What type of audit report should Mafah receive if the auditor is unable to use alternative procedures for these two audit areas?

• A)disclaimer
• B)adverse
• C)qualified
• D)unmodified

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Definitions:

Payroll Register

A document that summarizes the wages, deductions, and net pay for all employees for a specific payroll period.

Deductions

Amounts subtracted from gross income or revenue to determine taxable income, which can include expenses, allowances, and exemptions.

Contingent Liabilities

Liabilities that could arise based on the result of an upcoming event.

Future Event

An occurrence or situation that has not yet happened but is expected or likely to occur.