By issuing a qualified opinion,an auditor escapes liability for defects in financial statements audited by the auditor.

Question

Quizplus · Accepted Answer

Even after issuing a qualified opinion,an auditor may not escape complete liability for defects in financial statements audited by the auditor because letters that purport to disclaim liability totally for false and misleading financial statements are too general to excuse an accountant from exercising ordinary skill and care.

By Issuing a Qualified Opinion,an Auditor Escapes Liability for Defects