Refusal by a client to prepare and sign the representation letter would require the auditor to issue a(n)
A) qualified opinion or a disclaimer of opinion.
B) adverse opinion or a disclaimer of opinion.
C) qualified or an adverse opinion.
D) unqualified opinion with an explanatory paragraph.

Question

Quizplus · Accepted Answer

The refusal by a client to prepare and sign the representation letter is a limitation on the scope of the audit. This limitation prevents the auditor from obtaining sufficient appropriate audit evidence. As a result, the auditor may issue a qualified opinion if the matter is material but not pervasive, or a disclaimer of opinion if the matter is both material and pervasive.

Refusal by a Client to Prepare and Sign the Representation