When an auditor lacks independence with respect to a client,the auditor should issue
A)a disclaimer of opinion.
B)an adverse opinion.
C)a qualified opinion with explanatory paragraph.
D)an unqualified opinion.

Question

Quizplus · Accepted Answer

According to auditing standards, an auditor must be independent with respect to their client in both fact and appearance in order to provide an unqualified opinion. If the auditor lacks independence, they cannot provide an unqualified opinion and must ultimately issue a disclaimer of opinion. A disclaimer of opinion states that the auditor does not express an opinion on the financial statements and is issued when there is a lack of sufficient evidence or the auditor is unable to obtain the necessary evidence to form an opinion.

When an Auditor Lacks Independence with Respect to a Client,the