The financial statements of MyFriend Bhd contain no material misstatements. Issues involving non-compliance with the requirements of the Malaysian Financial Reporting Standards had been duly rectified by the management. Due to large amount of fraudulent transactions involving a few employees of the company, the profit, asset and equity figures in the financial statements of MyHouse Bhd were significantly overstated. The management refused to make the necessary adjustments on the ground that the offender has not been charged in court. iii. The financial statements of MyCar Bhd were prepared in accordance with the relevant financial reporting framework. However, the auditor is concerned with the poor credit standing of the company. As at the reporting date, the current ratio is 0.4:1 and the company incurred continuous losses over the past two years. The weak financial condition casts significant doubt on the ability of the company to continue its business operations in the foreseeable future. iv. The financial statements of MyBook Bhd reflect a true and fair view of the company's financial performance and state of affairs. The company registered a pre-tax profit of RM900,000 during the current financial year. However, the auditor noted that the accounts receivable balance was overstated by RM80,000 due to the refusal of the company to write-off the uncollectible amount. No other material finding was noted. During the audit of MyLife Bhd, the auditor was unable to examine most of the important supporting documents for the current year transactions as they were intentionally destroyed by two employees who perpetrated fraud