When a Client Declines to Include a Statement of Cash

question 38

Multiple Choice

When a client declines to include a statement of cash flows in its financial report, the auditor's report will usually:

• A)include a separate paragraph that summarises the company's financing and investing activities.
• B)contain either a qualified or adverse opinion because of inadequate disclosure.
• C)refer to the scope limitation.
• D)contain either a qualified opinion or a disclaimer of opinion on the basis of the uncertainty caused by this disagreement with those charged with governance.

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Definitions:

THC

Tetrahydrocannabinol, the psychoactive compound found in cannabis that is responsible for its intoxicating effects.

Hyperthermia

A medical condition characterized by an abnormally high body temperature that exceeds the body’s capability to dissipate heat.

Water Intoxication

A potentially fatal disturbance in brain functions that results when the normal balance of electrolytes in the body is pushed outside of safe limits by excessive water intake.

Hypernatremia

A condition characterized by an abnormally high level of sodium in the blood, potentially indicating dehydration or other medical conditions affecting the body’s water balance.