The auditor is unable to reach a conclusion as to the reasonableness of management's representations. The auditor will have to consider issuing a(n):
A) qualified opinion because of inadequate disclosure.
B) qualified opinion because of uncertainty.
C) qualified opinion or a disclaimer of opinion.
D) adverse opinion.

Question

Quizplus · Accepted Answer

If the auditor is unable to reach a conclusion on the reasonableness of management's representations, they cannot issue an unqualified opinion. Instead, they may issue a qualified opinion or a disclaimer of opinion. A qualified opinion may be issued if the auditor believes that the financial statements are fairly presented except for a specific departure from GAAP or a limitation on the scope of the audit. A disclaimer of opinion may be issued if the auditor is unable to obtain sufficient appropriate evidence or there is a significant scope limitation.

The Auditor Is Unable to Reach a Conclusion as to the Reasonableness