Muir Ltd Is Required to but Does Not Wish to Prepare

question 44

Multiple Choice

Muir 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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Definitions:

Minority Influence

The process by which a smaller portion of a group can change the opinions, attitudes, or behaviors of the larger group, often through consistent and confident positions.

Unyielding Resolve

A firm determination to persist in an effort or plan despite difficulties or opposition.

Self-Confidence

The subjective sense of trust in one's abilities, qualities, and judgment, influencing an individual's approach to challenges, relationships, and responsibilities.

Minority Opinions

Views or beliefs that are held by a smaller segment of a group, contrasting with the majority viewpoint.