Page 206 - Microsoft Word - 00 IWB ACCA F7.docx

Chapter 10 3 4

Disclaimer of opinion

A disclaimer of opinion is issued when the auditor has not obtained sufficient
appropriate evidence and the effects of any possible misstatements could be
pervasive. The auditor does not express an opinion on the financial statements
in this situation.

Examples include:

 Failure by the client to keep adequate accounting records.

 Refusal by the directors to provide written representation.

 Failure by the client to provide evidence over a single balance which represents
a substantial proportion of the assets or profits or over multiple balances in the
financial statements.

Illustrations and further practice

Look at Illustration 8 in Chapter 10 for an example of a disclaimer of opinion.

202