When an entity will not permit inquiry of outside legal counsel, the auditors' report on the entity's financial statements will ordinarily contain a(n)
A)disclaimer of opinion.
B)qualified opinion referencing a departure from generally accepted accounting principles.
C)unmodified opinion with an emphasis-of-matter paragraph.
D)adverse opinion.

Question

Quizplus · Accepted Answer

If an entity does not allow inquiry of outside legal counsel, the auditors will face a limitation of scope which will prevent them from obtaining sufficient audit evidence. As a result, the auditors will issue a disclaimer of opinion.

When an Entity Will Not Permit Inquiry of Outside Legal