The failure of a client to include a statement of cash flows will result in the issuance of a disclaimer of opinion by the auditor.

Question

Quizplus · Accepted Answer

The failure to include a statement of cash flows would typically result in a qualified opinion or an adverse opinion from the auditor, depending on the materiality of the omission, rather than a disclaimer of opinion. A disclaimer of opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion or when there is a significant uncertainty.

The Failure of a Client to Include a Statement of Cash