Due to a Scope Limitation, an Auditor Disclaimed an Opinion

question 211

Multiple Choice

Due to a scope limitation, an auditor disclaimed an opinion on the financial statements taken as a whole, but the auditor's 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 scope paragraph adequately describes the scope limitation.
• D) Appropriate provided the statement is in a separate paragraph preceding the disclaimer of opinion paragraph.

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