State what type of auditor’s report should be issued
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Dawson Co’s computerised wages program is backed up daily, however for a period of two months the wages records and the back-ups have been corrupted, and therefore cannot be accessed. Wages and salaries for these two months are $1·1m. Profit before tax is $10m.
State what type of auditor’s report should be issued; disclaimer of opinion(bartleby expert answer) or qualified except for opinion(ACCA AA (F8) Past papers - Question 3b - December 2014 Specimen (Dec 2014) | aCOWtancy Exam Centre). and explain your choice.
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