The need to issue a disclaimer of opinion arises when there is a:
A) material scope limitation.
B) material and pervasive scope limitation.
C) conflict between reporting frameworks.
D) conflict with management.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence because of material and pervasive scope limitation. This means that the auditor was not able to audit a significant portion of the financial statements or transactions due to some constraints. A disclaimer of opinion is not issued due to a conflict with management or reporting frameworks alone.

The Need to Issue a Disclaimer of Opinion Arises When