Question: Evaluation of an auditors report. Mrs Meyer is a director of an international firm of external auditors and works in the Auckland office. Mrs Meyer is the engagement partner on the audit of CountSave Foods Ltd, a company listed on the NZX. The audit team completed the audit for the year ended 31 March 2020 and the audit senior prepared the following draft audit report. Auditors report CountSave Foods Ltd Opinion We have audited the financial statements set out on pages 12 40, which comprise the statement of financial position as at 31 March 2020, and the statement of profit or loss for the year and glanced through the cash flow statement then ended and the notes to the financial statements. In our opinion, except for the possible effect of the matter described in our report, the financial statements present fairly, in all material respects the financial position of CountSave Foods Ltd as at 31 March 2020, and its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standards Other information The other information comprises the Directors report as required under the NZ Companies Act In connection with our audit of the financial statements, if based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. Basis for opinion Included in accounts payable is an amount of $15 million. The company did not have adequate controls to maintain records of accounts payable for goods and services received but not paid. We are unable to obtain sufficient and appropriate audit evidence to substantiate the accruals disclosed in note 28 to the financial statements. As a result, we are unable to determine whether any adjustments were required to the financial statements arising from the accounts payable and accruals not brought to account or incorrectly stated We conducted our audit in accordance with the international Standards of Auditing