Refusal by a client to prepare and sign the representation letter would require a(n)
A)qualified opinion as to scope limitation or a disclaimer of opinion.
B)adverse opinion or a denial of opinion.
C)qualified opinion as to accounting treatment departure or an adverse opinion.
D)unqualified opinion with an explanatory paragraph.

Question

Quizplus · Accepted Answer

When a client refuses to prepare and sign the representation letter, it would lead to a scope limitation, which would require a qualified opinion or a disclaimer of opinion. The other options of adverse opinion or denial of opinion, and qualified opinion as to accounting treatment departure or an adverse opinion, would only be applicable if there were issues with the financial statements.

Refusal by a Client to Prepare and Sign the Representation