Due to a scope limitation, an auditor disclaimed an opinion on the financial statements as a whole, but the auditors report included a statement that the current asset portion of the entity's balance sheet was fairly stated. The inclusion of this statement is
A. Not appropriate because it may tend to overshadow the auditor's disclaimer of opinion.
B. Not appropriate because the auditor is prohibited from reporting on only one basic financial statement.
C. Appropriate, provided the auditor's responsibility section adequately describes the scope limitation.
D. Appropriate, provided the statement is in the basis for disclaimer of opinion paragraph preceding the disclaimer of opinion paragraph.
Ans: A. Not appropriate because it may tend to overshadow the auditor's disclaimer of opinion.
You might also like to view...
Limited partners of a limited liability limited partnership (LLLP) are involved in the management functions of the partnership
Indicate whether the statement is true or false
Which of the following companies is suitable for franchising?
A) Home Depot B) Dropbox C) Qdoba Mexican Grill D) Walmart E) GoPro