In addition to withdrawal, scope limitations on ICFR audits result in:
A) an adverse opinion.
B) a qualified opinion.
C) a disclaimer of opinion.
D) depending on the circumstances, the auditor may choose any of the above.

Question

Quizplus · Accepted Answer

Scope limitations on internal control over financial reporting (ICFR) audits are significant enough to result in a disclaimer of opinion. This means that the auditor is unable to obtain sufficient evidence to support their opinion on the effectiveness of ICFR, and as a result, cannot provide an opinion on whether the company's financial statements are fairly presented in all material respects. Withdrawal from the engagement is also a possibility, but it is not a formal opinion. Adverse and qualified opinions are issued when the auditor believes that the financial statements contain misstatements, but scope limitations are not a basis for either of these opinions.

In Addition to Withdrawal, Scope Limitations on ICFR Audits Result