In the context of limitation on scope or inability to obtain sufficient appropriate evidence, which opinion might the auditor issue?

• A. Clean opinion.
• B. We do not express an opinion.
• C. Qualified opinion.
• D. Adverse opinion.

Answer: (B)

When the scope of an audit is limited or the auditor cannot obtain sufficient appropriate evidence, the auditor cannot form an opinion on the financial statements. The appropriate report in that situation is a disclaimer of opinion, meaning the auditor states that they do not express an opinion on the financial statements. This reflects that, without enough evidence, any conclusion would be unreliable.

Other opinions have different triggers. A clean (unmodified) opinion requires no material misstatements and no scope limitations. A qualified opinion is used if there is a material issue (misstatement or scope limitation) that is not pervasive. An adverse opinion is reserved for pervasive misstatements.