The issuance of a disclaimer of opinion generally indicates
A)the auditors cannot form an opinion on the fairness of presentation of the financial statements as a whole.
B)the auditors have some uncertainties, but these uncertainties are not so material that they cannot form an opinion on the fairness of presentation of the financial statements as a whole.
C)the auditors have observed a departure from generally accepted accounting principles but the departure is not of sufficient materiality to justify a qualified opinion.
D)the auditors have observed a departure from generally accepted accounting principles that is so material and pervasive that a qualified opinion is not justified.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued by auditors when they are unable to form an opinion on the fairness of presentation of the financial statements as a whole. This could happen due to various reasons such as lack of sufficient evidence or limitations on the scope of the audit. It indicates a high level of uncertainty and lack of confidence in the financial statements.

The Issuance of a Disclaimer of Opinion Generally Indicates