in their locality. HAT does not revalue its factory premises, which are held in the statement of financial position at $2.7m.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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HAT Ltd owns a number of its retail premises, which it revalues annually. This year several of its shops rose sharply in value due to inflated property prices in their locality. HAT does not revalue its factory premises, which are held in the statement of financial position at $2.7m. HAT ltd's Profit before tax was $7m and a statement of financial position total of $23m.

State what type of auditor’s report should be issued and explain your choice. You should not reproduce the entire audit report. Only mention appropriate extracts which are relevant.

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