Huggins Ltd Is Required to but Does Not Wish to Prepare

question 11

Multiple Choice

Huggins Ltd is required to but does not wish to prepare and issue a statement of cash flows as part of its financial report. In these circumstances, the auditor's report should include:

• A) an adverse opinion stating that the financial report, taken as whole, is not fairly presented because of the omission of the required statement.
• B) an unmodified opinion with a statement of cash flows prepared by the auditor included as part of the auditor's report.
• C) an unmodified opinion with an Emphasis of Matter section explaining that the company declined to present the required statement.
• D) a disclaimer of opinion with a separate explanatory paragraph stating why the company declined to present the required statement.

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