In addition to having modifications of wording for the financial statement audit opinion,other types of opinions can have modifications as well.Which of the following describes a situation where there would be a qualification or disclaimer of opinion for a direct reporting engagement?

Question

Quizplus · Accepted Answer

A qualification or disclaimer of opinion may occur in a direct reporting engagement (such as a review or compilation) if the subject matter being reported on does not conform to the criteria established by the organization requesting the report. This means that the information being reported is not reliable or accurate, which would result in a modified opinion. Option B may also be a reason for a modified opinion, but it is more commonly seen in financial statement audits. Option C refers to a scope limitation, which may result in a modified opinion, but not necessarily a qualification or disclaimer. Option D refers to a disagreement between the practitioner and management, which may result in a withdrawal from the engagement, rather than a modified opinion.

In Addition to Having Modifications of Wording for the Financial