When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the client's financial statement?
A) When the auditor believes the financial statements are misleading.
B) When the auditor was unable to observe the taking of the physical inventory.
C) When the auditor is uncertain about the outcome of a material uncertainty.
D) When the auditor has performed insufficient auditing procedures to express an opinion.

Question

Quizplus · Accepted Answer

An auditor's reporting responsibilities cannot be met simply by attaching an explanation and disclaimer if they believe the financial statements are misleading. The auditor must take additional steps to ensure that the financial statements are not misleading and express an appropriate opinion on them.

When Are an Auditor's Reporting Responsibilities Not Met by Attaching