Part of the audit report accompanying the most recent financial statements of Martin Wholesale Ltd$.$ states:

Because of the significance of the matters described in the basis for disclaimer of opinion paragraph, we do not express an opinion on the financial statements as to whether they have been properly prepared, in all material respects, in accordance with International Financial Reporting Standards. In addition, we do not express an opinion on the statement of financial position together with the notes thereon as to whether they fairly state the financial position of the Company$$s affairs at December $31,2023.$

We were initially appointed auditors on February $12,2024$ which was after the end of the Company's financial year. In consequence we were unable to carry out auditing procedures necessary to obtain adequate assurance regarding the quantities and condition of inventories appearing in statement of financial position. There were no other satisfactory audit procedures that we could adopt to obtain sufficient evidence regarding the existence of inventories. Accordingly, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Any adjustment to the figure may have a consequential significant effect on the profit $($loss$)$ for the year and net assets at December $31,2024.$

Required:

$1.$This is excerpted from what type of audit report?

$2.$What financial statements are possibly affected?