If an auditor makes a disclaimer of opinion,this means that the auditor ________.
A) is of the opinion that the company's financial statement matches its performance but notes a few departures from GAAPs
B) is of the opinion that the company's financial statement does not accurately reflect the company's financial position
C) is unable to draw a conclusion about the accuracy of the company's financial records owing to lack of information
D) finds that the company's financial statements fairly represent the company's financial position

Question

Quizplus · Accepted Answer

When an auditor makes a disclaimer of opinion, it means that they are unable to draw a conclusion about the accuracy of the company's financial records owing to lack of information. This can occur when the auditor is unable to gather sufficient evidence to form an opinion or when the company's records are incomplete or unreliable. It does not indicate that the auditor has found that the financial statements are accurate or inaccurate.

If an Auditor Makes a Disclaimer of Opinion,this Means That