When the auditor issues a disclaimer of opinion on a set of financial statements, the audit report should:
A) be unqualified.
B) begin with the term "except for".
C) express an adverse opinion.
D) have a paragraph headed 'disclaimer of opinion'.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive. The audit report should clearly indicate this by including a paragraph headed 'disclaimer of opinion' to explain the reason for the disclaimer.

When the Auditor Issues a Disclaimer of Opinion on a Set