If a lawyer refuses to provide the auditor with information that is within the lawyer's jurisdiction and may directly affect the fair presentation of financial statements about material existing lawsuits (asserted claims)or unasserted claims,the audit report would have to be
A)an adverse opinion.
B)a qualified opinion.
C)an unqualified opinion with an explanatory paragraph.
D)modified to reflect the lack of available evidence (i.e. ,scope limitation).

Question

Quizplus · Accepted Answer

If a lawyer refuses to provide necessary information that directly affects the financial statements, the auditor cannot obtain sufficient evidence for the audit. As a result, the auditor's report should be modified to reflect the lack of available evidence, indicating a scope limitation. This would be the best option because the auditor cannot provide an opinion without sufficient evidence, and they cannot verify the assertions made by the company without the lawyer's cooperation. Therefore, a scope limitation is necessary in this situation.

If a Lawyer Refuses to Provide the Auditor with Information