Restrictions imposed by a client prohibit the observation of physical inventories, which account for 35% of all assets. Alternative audit procedures cannot be applied, although the auditor was able to examine satisfactory evidence for all other items in the financial statements. The auditor should issue a(an):

Question

Quizplus · Accepted Answer

Choice "B" is correct. R,estrictions of scope imposed on the audit of such a large (35%) asset would require a disclaimer of opinion. C,hoices "A," and "C," are incorrect. T,he asset not audited is too large for a qualified opinion and much too large for an unqualified opinion. C,hoice "D," is incorrect. E,xplanatory language does not get inserted into the scope paragraph, nor is an unqualified opinion appropriate.

Restrictions Imposed by a Client Prohibit the Observation of Physical