{"id":32657,"date":"2024-04-15T09:04:57","date_gmt":"2024-04-15T09:04:57","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=32657"},"modified":"2024-04-15T09:04:57","modified_gmt":"2024-04-15T09:04:57","slug":"the-management-of-a-company-to-which-as3-is-not-applicable-does-not-include-statement-of-cash-flows-in-its-annual-report-the-auditor-should-express","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-management-of-a-company-to-which-as3-is-not-applicable-does-not-include-statement-of-cash-flows-in-its-annual-report-the-auditor-should-express\/","title":{"rendered":"The management of a company, to which AS3 is not applicable, does not include statement of cash flows in its annual report. The auditor should express:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Unqualified opinion&#8221; option2=&#8221;Qualified opinion&#8221; option3=&#8221;Adverse opinion&#8221; option4=&#8221;Any of these depending upon materiality and pervasiveness and adequacy of disclosure&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>D. Any of these depending upon materiality and pervasiveness and adequacy of disclosure<\/strong><\/p>\n<p>AS3 is the Australian Accounting Standard that prescribes the presentation of a statement of cash flows. It is applicable to all entities, except for those that are:<\/p>\n<ul>\n<li>Small proprietary companies<\/li>\n<li>Not-for-profit entities<\/li>\n<li>Entities that are required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS)<\/li>\n<\/ul>\n<p>If the management of a company, to which AS3 is not applicable, does not include statement of cash flows in its annual report, the auditor should express an opinion on the financial statements as a whole. The auditor&#8217;s opinion will depend on the materiality and pervasiveness of the omission, and the adequacy of disclosure in the financial statements.<\/p>\n<p>If the omission of the statement of cash flows is not material and does not have a pervasive effect on the financial statements, the auditor may express an unqualified opinion. However, if the omission is material or pervasive, the auditor may express a qualified opinion or an adverse opinion.<\/p>\n<p>If the auditor is unable to obtain sufficient appropriate audit evidence to conclude whether the omission of the statement of cash flows is material or pervasive, the auditor may express a disclaimer of opinion.<\/p>\n<p>The auditor&#8217;s opinion is an important part of the financial statements. It provides users of the financial statements with an independent assessment of the fairness of the presentation of the financial position, financial performance and cash flows of the entity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Unqualified opinion&#8221; option2=&#8221;Qualified opinion&#8221; option3=&#8221;Adverse opinion&#8221; option4=&#8221;Any of these depending upon materiality and pervasiveness and adequacy of disclosure&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[698],"tags":[],"class_list":["post-32657","post","type-post","status-publish","format-standard","hentry","category-auditing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The management of a company, to which AS3 is not applicable, does not include statement of cash flows in its annual report. 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The auditor should express:","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-management-of-a-company-to-which-as3-is-not-applicable-does-not-include-statement-of-cash-flows-in-its-annual-report-the-auditor-should-express\/","og_locale":"en_US","og_type":"article","og_title":"The management of a company, to which AS3 is not applicable, does not include statement of cash flows in its annual report. 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