When restrictions are imposed by the client, which significantly limit the auditor's ability to audit fixed assets (a material part of the balance sheet), the auditor generally should issue which of the following opinions?
A) Unmodified with an Emphasis of Matter.
B) Qualified.
C) Disclaimer.
D) Adverse.

Question

Quizplus · Accepted Answer

A qualified opinion is issued when the auditor has obtained sufficient appropriate evidence to form an opinion on the financial statements, but there is a material uncertainty or limitation on the scope of the audit. In this case, the restrictions imposed by the client significantly limit the auditor's ability to audit fixed assets, which is a material part of the balance sheet. Therefore, the auditor would issue a qualified opinion.

When Restrictions Are Imposed by the Client, Which Significantly Limit