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(an)
A) disclaimer of opinion.
B) qualified opinion.
C) review report.
D) unqualified opinion with a separate explanatory paragraph.

Question

Quizplus · Accepted Answer

The statement of cash flows is a required part of a company's financial statements according to the Generally Accepted Accounting Principles (GAAP). If a company omits this statement, the auditor cannot express an unqualified opinion, but may issue a qualified opinion stating that the financial statements are fairly presented except for the omission of the statement of cash flows.

If a Public Company Issues Financial Statements That Purport to Present