If a public company issues financial statements that purport to present its financial position and results of operations but omits the statement of cash flows, the auditor ordinarily will express a(n):
A)disclaimer of opinion.
B)qualified opinion.
C)review report.
D)unqualified opinion with a separate explanatory paragraph.

Question

Quizplus · Accepted Answer

The omission of the statement of cash flows from a complete set of financial statements is a departure from generally accepted accounting principles (GAAP). As such, the auditor would typically express a qualified opinion, indicating that, except for the missing statement of cash flows, the financial statements present the company's financial position and results of operations in accordance with GAAP.

If a Public Company Issues Financial Statements That Purport to Present