Question 9: In the draft financial statements for the period ended 31 March 2021, the auditors of Alpha Limited discovered that the liability for tax payable was overstated and recommended an adjustment of 160,000. If the directors of Alpha Limited agree to make the adjustment suggested by the auditors, the reported profit after tax for the year will: a) decrease by 160,000 b) increase by 160,000 In the statement of financial position, there will be a: a) decrease in liabilities of 160,000 b) increase in liabilities of 160,000