The Audit of the Financial Reports of Matilda Plc Had

question 4

Multiple Choice

The audit of the financial reports of Matilda Plc had been completed except for the outcome of a material contingent liability that is still subject to the outcome of a court decision.The case is still ongoing but it is expected that a decision will be made after three months.The deadline for submitting the financial reports is next month.Which action is consistent with the notion of 'timeliness' in the preparation of financial reports?

• A)Matilda Plc should wait for the court decision to be completed before releasing the financial reports as the amount of the liability is material.
• B)Matilda Plc should release the financial report on or before the deadline but exclude the contingent liability from the report as the outcome is still uncertain.
• C)Matilda Plc should release the financial report on or before the deadline but disclose the contingent liability in the notes to the accounts.
• D)Matilda Plc must wait for the court decision to be completed before releasing the financial reports as it is expected to occur in the near future anyway (i.e.three months).

---

Definitions:

Shortage

A situation in which the demand for a product or service exceeds the available supply, often leading to higher prices or unmet consumer needs.

Organizational Flexibility

The ability of an organization to adapt rapidly and efficiently to changes in the internal and external environment.

HR Forecasting

The process of predicting an organization's future human resources needs based on current data, trends, and projected future events to ensure that the right number of people with the right skills are available when needed.

HR Strategies

Long-term plans designed to align human resource management with the overall goals of an organization to achieve competitive advantage.