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) unmodified opinion with an additional paragraph.
D) adverse opinion.

Question

Quizplus · Accepted Answer

When an entity will not permit inquiry of outside legal counsel, it represents a limitation of scope preventing the auditors from obtaining sufficient evidence to support their audit opinion. In such cases, the auditors will issue a disclaimer of opinion, indicating that they are unable to express an opinion on the financial statements.

When an Entity Will Not Permit Inquiry of Outside Legal