Zag Coissues Financial Statements That Present Financial Position and Results of of Operations,but

question 76

Multiple Choice

Zag Co.issues financial statements that present financial position and results of operations,but Zag omits the related statement of cash flows.Zag would like to engage Brown,CPA,to audits its financial statements without the statement of cash flows although Brown's access to all of the information underlying the basic financial statements would not be limited.Under the circumstances,Brown most likely would

• A)Add an other-matter paragraph to the standard (unmodified)report that justifies the omission.
• B)Refuse to accept the engagement as proposed because of the client-imposed scope limitation.
• C)Explain to Zag that the omission requires a qualification of the auditors' opinion.
• D)Prepare the statement of cash flows as an accommodation to Zag and express an unmodified opinion.

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Definitions:

Median

The middle value in a dataset when it is ordered from smallest to largest, or the mean of the two middle numbers if there is an even number of values.

Sample Variance

A measure that quantifies the degree to which sample points in a dataset differ from the sample mean.

Population Variance

A measure of the dispersion of individual values in a population around the mean of the population.

Sample Variance

The measure of dispersion or variability within a sample data set, quantifying the spread of its values.