Mafah Distribution Limited Has Requested That the Audited Financial Statements

question 38

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) unqualified

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Definitions:

Recordkeeping Requirement

Regulations or guidelines stipulating the type, format, and duration records must be maintained by organizations.

Low Morale

A state where employees feel unmotivated and unsatisfied with their work, potentially leading to decreased productivity.

Overtime Pay

Additional compensation required by law to be paid to eligible employees for hours worked beyond the standard workweek, typically calculated as one and a half times the regular hourly rate.

Occupational Safety

Practices and policies designed to protect workers from hazards and injuries in the workplace.