What is the purpose of a disclaimer of opinion? In what situations would an auditor issue...
What is the purpose of a disclaimer of opinion? In what situations would an auditor issue a disclaimer of opinion? Why should the auditor ordinarily disclaim an opinion if the client imposes significant scope limitations on the audit procedures?
Homework Answers
Solution. An organization working in competitive business market needs to maintain targeted level of profit objective along with social impact in society, to sustain. A responsible, bias free auditing plays an important role in building and maintaining trust relationship of an organization with externals. Audit reports are made within set modified rules and regulations, and in case of no opinion provided by the auditor at the end of auditing process, it is referred to as a disclaimer of opinion and forms the purpose of issuing replacement report. It can be a result of in case where an organization fails to provide all necessary documents regarding information, or the auditor's limitation on obtaining sufficient established audit evidence, presence of material misstatements can lead to issue of disclaimer of opinion by the auditor.
An auditor disclaim an opinion even if the client imposes significant scope limitations on the audit procedures, as it accounts to report and question organization's existence of substantial doubt on audit evidences and material accounts which could also be pervasive.
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What is the purpose of a disclaimer of opinion? In what
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