When the auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist,they normally may still give an unmodified (unqualified)opinion on the client's income statement.

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When auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist, they will normally issue a qualified or adverse opinion on the financial statements, which will disclose the uncertainty and potential misstatements. An unmodified (unqualified) opinion indicates that the financial statements are fairly presented in all material respects, which cannot be concluded if there is a significant uncertainty or limitation in scope.

When the Auditors Cannot Satisfy Themselves as to the Accuracy