An auditor who is unable to form an opinion on a new client's opening inventory balances may issue an unqualified opinion on the current year's
A)income statement only.
B)statement of cash flows only.
C)balance sheet only.
D)statement of shareholders' equity only.

Question

Quizplus · Accepted Answer

If the auditor is unable to form an opinion on the opening inventory balances, it may impact the balance sheet and related disclosures. Therefore, the auditor can issue an unqualified opinion on the current year's income statement, statement of cash flows, and statement of shareholders' equity, but not on the balance sheet.

An Auditor Who Is Unable to Form an Opinion on a New