What is the exact wording used to describe the opinion when there is a limitation on scope?

What is the exact wording used to describe the opinion when there is a limitation on scope?

• A. We express no opinion.
• B. We do not express an opinion.
• C. We express a qualified opinion.
• D. We express an adverse opinion.

Answer: (B)

When there is a limitation on scope, the auditor cannot obtain enough evidence to form an opinion on the financial statements. The proper wording in the report is “We do not express an opinion on the financial statements.” This signals a disclaimer of opinion due to insufficient evidence, which is distinct from issuing a qualified or adverse opinion that would reflect issues in the statements themselves. The other options describe different conclusions that don’t match the situation of a scope limitation.

When there is a limitation on scope, the auditor cannot obtain enough evidence to form an opinion on the financial statements. The proper wording in the report is “We do not express an opinion on the financial statements.” This signals a disclaimer of opinion due to insufficient evidence, which is distinct from issuing a qualified or adverse opinion that would reflect issues in the statements themselves. The other options describe different conclusions that don’t match the situation of a scope limitation.