A solicitor limits a response concerning a litigation claim because the solicitor is unable to determine the likelihood of a favourable outcome.Which type of opinion should the auditor express if the litigation is adequately disclosed and the range of potential loss is material in relation to the client's financial report considered as a whole?
A)Qualified.
B)Unmodified with an Other Matter paragraph.
C)Unmodified with an Emphasis of Matter paragraph.
D)Unmodified.

Question

Quizplus · Accepted Answer

An unmodified opinion with an Emphasis of Matter paragraph is appropriate when the auditor wants to draw attention to an adequately disclosed matter in the financial statements, such as a litigation claim with an uncertain outcome, without changing the opinion on the financial statements as a whole.

A Solicitor Limits a Response Concerning a Litigation Claim Because