A disclaimer of opinion is issued when
A) All informative disclosures have not been made in the financial statements.
B) Circumstances prevent the auditor from performing all audit procedures necessary to comply with generally accepted auditing standards.
C) The financial statements are not prepared in accordance with generally accepted accounting principles.
D) There is a potential going concern issue.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when the auditor is unable to obtain sufficient evidence to support the financial statements due to circumstances that prevent them from performing all necessary audit procedures in accordance with GAAS. All informative disclosures not being made, non-GAAP financial statements, and potential going concern issues could result in other types of audit opinions (qualified, adverse, or unmodified with explanatory language).

A Disclaimer of Opinion Is Issued When