An auditor will issue a disclaimer when he or she concludes that the financial statements are not fairly presented.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive. When an auditor concludes the financial statements are not fairly presented, they would issue an adverse opinion, not a disclaimer.

An Auditor Will Issue a Disclaimer When He or She