If the auditors encounter a material scope limitation in the examination of an entity's financial statements,which of the following types of opinions could be issued?
A) Adverse opinion or disclaimer of opinion.
B) Adverse opinion or qualified opinion.
C) Unqualified opinion with explanatory language or qualified opinion.
D) Disclaimer of opinion or qualified opinion.

Question

Quizplus · Accepted Answer

If auditors encounter a material scope limitation, they are unable to obtain sufficient evidence to provide an opinion on the financial statements. This situation can lead to either a disclaimer of opinion (meaning no opinion is given) or a qualified opinion (meaning an opinion is given, but with a modification to reflect the scope limitation). Therefore, choice D is the best answer because it includes both options that could be issued in this scenario.

If the Auditors Encounter a Material Scope Limitation in the Examination