An auditor most likely would issue a disclaimer of opinion because of ________.
A)inadequate disclosure of a material contingent liability.
B)the omission of the statement of cash flows
C)a material asset addition should have been expensed.
D)management's refusal to furnish written representations

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when there are significant limitations on the scope of the audit or when the auditor is unable to obtain sufficient appropriate evidence to support the financial statements. If management refuses to provide written representations, the auditor will be unable to obtain enough evidence and will likely issue a disclaimer of opinion. This is because written representations are a normal part of the audit and are used to confirm the truth and completeness of management's assertions concerning the financial statements. Consequently, if management refuses to provide written representations, the auditor's ability to obtain sufficient evidence is significantly limited.

An Auditor Most Likely Would Issue a Disclaimer of Opinion