Auditors would be more likely to issue a disclaimer of opinion when a scope limitation is client imposed as opposed to circumstance imposed.

Question

Quizplus · Accepted Answer

When a scope limitation is client imposed, it is typically due to a lack of cooperation or unwillingness to provide necessary information. This makes it difficult for the auditor to gather sufficient evidence to form an opinion on the financial statements. In these cases, auditors may issue a disclaimer of opinion, which indicates that they were unable to obtain enough evidence to support their opinion. On the other hand, a circumstance imposed scope limitation is generally outside the control of the client, such as a natural disaster, and may not necessarily result in a disclaimer of opinion.

Auditors Would Be More Likely to Issue a Disclaimer of Opinion