When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue
A) an adverse opinion.
B) a disclaimer of opinion.
C) either a qualified opinion or an adverse opinion.
D) either a qualified opinion or an unqualified opinion with modified wording.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when the auditor is not able to form an opinion on the financial statements, which can be due to a lack of independence or other significant uncertainties.

When the Auditor Determines That the Financial Statements Are Fairly