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

Question

Quizplus · Accepted Answer

The auditor should issue a disclaimer of opinion because they are unable to obtain sufficient appropriate audit evidence due to the time constraint, which constitutes a scope limitation.

Mafah Distribution Limited Has Requested That the Audited Financial Statements