Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

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What is the auditor's likely response when unable to obtain sufficient appropriate audit evidence?

  1. Issue an unmodified opinion with an emphasis-of-matter

  2. Issue a disclaimer of opinion and a qualified opinion

  3. Issue an adverse opinion and a disclaimer of opinion

  4. Issue a qualified opinion and an unmodified opinion

The correct answer is: Issue a disclaimer of opinion and a qualified opinion

When an auditor is unable to obtain sufficient appropriate audit evidence, the appropriate response is to issue a disclaimer of opinion. This reflects the auditor's inability to gather enough evidence to provide a basis for an opinion on the financial statements. A disclaimer of opinion indicates that the auditor cannot express an opinion due to a scope limitation or uncertainty that may affect the financial statements. In this context, a qualified opinion could also be issued; however, this would only be appropriate if the auditor has enough evidence to support that the financial statements are materially misstated but still has enough evidence to form an opinion on a specific aspect. If the limitation in evidence is pervasive, a disclaimer is warranted instead, as it indicates that the auditor doesn't have sufficient evidence to conclude whether the financial statements are free of material misstatement. This response ensures that stakeholders are informed of the limitations faced during the audit and that the auditor was not able to provide a complete assurance about the accuracy and reliability of the financial statements. Therefore, the issuance of both a disclaimer of opinion and a qualified opinion shows an understanding of the auditor's responsibility to report on the limitations faced during the audit process.

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