When the client fails to make adequate disclosure in the body of the statements or in the related footnotes, it is the responsibility of the auditor to
A) inform the reader that disclosure is not adequate, and to issue an adverse opinion.
B) inform the reader that disclosure is not adequate, and to issue a qualified opinion.
C) present the information in the audit report and issue an unqualified or qualified opinion.
D) present the information in the audit report and to issue a qualified or an adverse opinion.

Question

Quizplus · Accepted Answer

When the client fails to make adequate disclosure, it is the responsibility of the auditor to present the information in the audit report and issue a qualified or an adverse opinion depending on the materiality and pervasiveness of the lack of disclosure. Therefore, option D is the best choice as it includes both options based on the severity of the issue.

When the Client Fails to Make Adequate Disclosure in the Body