In a financial statement audit, the difference between when an auditor issues a disclaimer or issues a qualified opinion because of a scope limitation centers on:
A) the reason for the scope limitation.
B) management's attitude and response to the auditor.
C) the cause and severity of the scope limitation.
D) Both "a" and "b".

Question

Quizplus · Accepted Answer

The key factor determining whether an auditor issues a disclaimer or a qualified opinion due to a scope limitation is the cause and severity of the scope limitation. If the limitation is pervasive, affecting multiple aspects of the financial statements, an auditor is more likely to issue a disclaimer. If it is less severe and does not affect the auditor's ability to opine on the financial statements as a whole, a qualified opinion may be issued.

In a Financial Statement Audit, the Difference Between When an Auditor