Tech Company has disclosed an uncertainty due to pending litigation. The auditor's decision to issue a qualified opinion rather than an unqualified opinion most likely would be determined by the:

Question

Quizplus · Accepted Answer

Choice "A" is correct. Lack of sufficient evidence to support management's assertions would most likely cause an auditor to issue a qualified or disclaimer of opinion. Choice "B" is incorrect. As long as it is fully disclosed, an inability to estimate the amount of loss from a future event (outcome of pending legislation) would most likely result in an unqualified opinion. Choices "C" and "D" are incorrect. Neither a lack of experience nor a lack of insurance coverage would impact the auditor's report.

Tech Company Has Disclosed an Uncertainty Due to Pending Litigation