If the scope restriction imposed by the client is so material that the overall fairness of the financial statements is in question, the auditor should issue a(n)
A) standard unmodified opinion.
B) disclaimer of opinion.
C) adverse opinion.
D) unmodified opinion with revised wording in the scope paragraph.

Question

Quizplus · Accepted Answer

If the scope restriction imposed by the client is so material that the overall fairness of the financial statements is in question, the auditor cannot issue a standard unmodified opinion because the financial statements are not fairly stated in all material respects. Similarly, the auditor cannot issue an unmodified opinion with revised wording in the scope paragraph as this would be misleading. An adverse opinion would only be appropriate if the financial statements are materially misstated, which may not be the case here. Therefore, the best choice in this scenario is to issue a disclaimer of opinion, indicating that the auditor is unable to express an opinion on the financial statements as a whole.

If the Scope Restriction Imposed by the Client Is So