Holmes, CPA, assisted Williams Corporation in preparing its financial statements and gave Williams permission to use Holmes's name in communications containing these financial statements. If Holmes did not audit the financial statements, what type of opinion should be expressed?

Question

Quizplus · Accepted Answer

Holmes should issue a disclaimer of opinion because he did not audit the financial statements. A disclaimer of opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, or when there is a limitation on the scope of the audit. Since Holmes did not perform an audit, he cannot express an opinion on the financial statements.

Holmes, CPA, Assisted Williams Corporation in Preparing Its Financial Statements