The need to issue a disclaimer of opinion arises when there is:
A) a conflict between reporting frameworks.
B) a material and pervasive scope limitation.
C) a conflict with management.
D) a material scope limitation.

Question

Quizplus · Accepted Answer

A disclaimer of opinion is issued when there is a material and pervasive scope limitation, meaning that the auditor was unable to obtain sufficient evidence to support their opinion on the financial statements as a whole. This limitation must be significant enough to impact the overall reliability and accuracy of the financial statements. The other options given (conflict between reporting frameworks, conflict with management, and material scope limitation) may also impact the audit report, but they would typically result in a qualified or adverse opinion, rather than a disclaimer.

The Need to Issue a Disclaimer of Opinion Arises When