Restrictions imposed by a client prohibited the observation of physical inventories that account for 35% of total assets.Alternative audit procedures for inventory were not feasible,although the auditor was able to obtain satisfactory evidence for all other items in the financial statements.The auditor should express ________.
A)an "except for" qualified opinion referring to a departure from generally accepted accounting principles
B)a disclaimer of opinion
C)an unqualified opinion with a separate explanatory paragraph
D)an unqualified opinion with an explanation in the scope paragraph

Question

Quizplus · Accepted Answer

Since the auditor was unable to obtain satisfactory evidence for a significant portion of total assets and alternative audit procedures were not feasible, a disclaimer of opinion is the appropriate choice. This indicates that the auditor is unable to express an opinion on the financial statements as a whole.

Restrictions Imposed by a Client Prohibited the Observation of Physical