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

Question

Quizplus · Accepted Answer

If the auditor is unable to obtain sufficient appropriate audit evidence and cannot perform alternative procedures, they may issue a disclaimer of opinion due to the scope limitation.

Mafah Distribution Limited Has Requested That the Audited Financial Statements