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)unqualified opinion with an explanatory paragraph.
D)adverse opinion.

Question

Quizplus · Accepted Answer

When an entity refuses to allow inquiry of outside legal counsel, the auditors are unable to obtain sufficient evidence to support their opinion. Therefore, a disclaimer of opinion is the appropriate type of report in this situation.

When an Entity Will Not Permit Inquiry of Outside Legal