When the auditor is unable to determine the amounts associated with noncompliance with a law by client personnel due to a scope limitation,the auditor should issue a(an):
A)Standard unmodified opinion.
B)Disclaimer of opinion.
C)Adverse opinion.
D)Unmodified opinion with a separate emphasis-of-matter paragraph.

Question

Quizplus · Accepted Answer

When the auditor is unable to obtain sufficient appropriate evidence due to a scope limitation, a disclaimer of opinion should be issued. Noncompliance with laws and regulations is an important matter and if the auditor is unable to determine the amounts associated with noncompliance by client personnel, it represents a material scope limitation that prevents the auditor from forming an opinion on the financial statements as a whole. In this case, a disclaimer of opinion is the appropriate choice.

When the Auditor Is Unable to Determine the Amounts Associated