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:

Embargo Act 1807

A law passed by the U.S. Congress prohibiting American ships from trading in foreign ports, aiming to coerce Britain and France into respecting U.S. neutrality during their wars.

Great Britain

A geopolitical term referring to the island that comprises England, Scotland, and Wales.

American Merchants

Businesspeople from the United States who engage in trade or commerce, historically significant in the development of the nation's economy and global trade networks.

Congressional War Hawks

Members of Congress, particularly during the War of 1812, who advocated for aggressive policies and military action against foreign nations.