An auditor who is unable to form an opinion on a new client's opening inventory balances may issue an unmodified opinion on the current year's
A)income statement only.
B)statement of cash flows only.
C)balance sheet only.
D)statement of changes in shareholders' equity only.

Question

Quizplus · Accepted Answer

The auditor's inability to form an opinion on the opening inventory balances would only affect the balance sheet. Therefore, an unmodified opinion can still be given on the other financial statements (income statement, statement of cash flows, statement of changes in shareholders' equity).

An Auditor Who Is Unable to Form an Opinion on a New