Question: As per the contract which has been signed between a trade union and the management, the pay increase of employees will be backdated to 1

As per the contract which has been signed between a trade union and the management, the pay increase of employees will be backdated to 1 January 2020, resulting in a charge equal to 10 % of profit. Management have agreed to the pay increase, however, they have not made any adjustments to the 30 June 2020 financial report. What type of auditor's report should you issue? Explain the reason for your answer.

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