When Disclaiming an Opinion Due to a Client-Imposed Scope Limitation

question 113

Multiple Choice

When disclaiming an opinion due to a client-imposed scope limitation, auditors should describe the nature of the scope limitation and modify the

• A)Disclaimer of Opinion on the Financial Statements section.
• B)Basis for Disclaimer of Opinion section.
• C)Disclaimer of Opinion on the Financial Statements section and Basis for Disclaimer of Opinion section.
• D)Disclaimer of Opinion on the Financial Statements section, Basis for Disclaimer of Opinion section, and explanatory paragraph.

---

Definitions:

Good Faith

Conducting oneself with honesty, fairness, and sincerity in dealings or transactions, without the intention to deceive or defraud.

Mortgage Loan

A loan secured by the collateral of specified real estate property, where the borrower is obliged to pay back with a predetermined set of payments.

Duty To Buy

An obligation, usually legal or contractual, to purchase a specific product or service.

Constructive Condition

Conditions inferred by law to enforce fairness in the performance of contractual obligations, even if not explicitly stated in the contract.