Management is responsible for the fair presentation of a company's financial statements. True False Question 44 The indirect method of reporting cash flows from operating activities begins with net income from the income statement. True False Question 45 5 pts The direct method of reporting cash flows from operating activities begins with net income from the income statement. True False The Management Discussion and Analysis section of the annual report is a part of the audited financial statements. True False Question 41 5 pts If an auditor's independence is impaired during an audit, an adverse opinion will be issued. True False Question 42 5 pts If an auditor is unable to form an opinion on the fair presentation of the financial statements, a disclaimer of opinion will be issued. True False Disclosure of a related-party transaction must include an evaluation of the fairness of the transaction's terms. True False Question 38 Financial statements issued under IFRS require additional disclosures relating to executive compensation for related-party transactions. True False Question 39 5pts Most annual reports begin with the letter to the shareholders. True False