(b) It is now 1 September 20X5 and the auditor’s report on Lifeson Co’s financial statements for the year ended 31 March 20X5 is due to be issued in the next few days.

Following discussions with management, you are satisfied that the sale and leaseback transaction has been treated correctly and that you have gathered sufficient and appropriate audit evidence to support this treatment.

However, management has indicated that they are not willing to make any further adjustments to the financial statements in relation to the investment property or shopping mall and you are now considering the form and content of the auditor’s report in relation to these matters.

Required:
Discuss the implications for the auditor’s report on the basis that no further adjustments have been made to the financial statements in relation to the investment property or shopping mall. (5 marks)