When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the entity's financial statement?
A) When the auditor believes the financial statements are misleading.
B) When the auditor was unable to observe the taking of the physical inventory.
C) When the auditor is uncertain about the outcome of a material uncertainty.
D) When the auditor has performed insufficient auditing procedures to express an opinion.

Question

Quizplus · Accepted Answer

If the auditor believes that the financial statements are misleading, a disclaimer of opinion and explanation of the circumstances are not sufficient to meet their reporting responsibilities. In this case, the auditor may need to withdraw from the engagement or express a qualified or adverse opinion.

When Are an Auditor's Reporting Responsibilities Not Met by Attaching