The failure of a client to include a statement of cash flow will result in the issuance of a disclaimer of opinion by the auditor.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence. The absence of a statement of cash flows would more likely result in a qualified opinion or an adverse opinion, depending on the materiality and pervasiveness of the omission.

The Failure of a Client to Include a Statement of Cash