Which statements are included in the audit opinion coverage?

Which statements are included in the audit opinion coverage?

• A. Balance sheet, Profit and loss account, Cashflow statement, Notes to accounts.
• B. Directors' report only.
• C. Tax computations only.
• D. Marketing reports.

Answer: (A)

The audit opinion covers the financial statements as a whole. Those statements include the balance sheet, the profit and loss account (income statement), the cash flow statement, and the notes to accounts. The notes explain accounting policies and provide detail that supports the numbers. Items like the directors' report, tax computations, or marketing reports are not part of the financial statements subject to the audit opinion. Therefore, the statements included in the audit opinion coverage are the balance sheet, P&L, cash flow statement, and notes to accounts.

The audit opinion covers the financial statements as a whole. Those statements include the balance sheet, the profit and loss account (income statement), the cash flow statement, and the notes to accounts. The notes explain accounting policies and provide detail that supports the numbers. Items like the directors' report, tax computations, or marketing reports are not part of the financial statements subject to the audit opinion. Therefore, the statements included in the audit opinion coverage are the balance sheet, P&L, cash flow statement, and notes to accounts.