Under which of the following circumstances would a disclaimer of opinion be appropriate?
A) The client refuses to allow the auditor to review the minutes of the board of director's meetings.
B) The financial statements fail to contain adequate disclosure of related party transactions.
C) The auditor is engaged during the year and is unable to observe opening physical inventories which are material.
D) The auditor has identified illegal payments to foreign officials made by the client's management.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is appropriate when the auditor is unable to obtain sufficient appropriate audit evidence, such as when the client refuses access to important documents like board meeting minutes.

Under Which of the Following Circumstances Would a Disclaimer of Opinion