Final answer:
A qualified report can take the form of a qualification of both the scope and the opinion or of the opinion alone. A qualified report may be issued when the scope of the audit is limited or when there is a disagreement with accounting principles.
Step-by-step explanation:
A qualified report can take the form of a qualification of both the scope and the opinion or of the opinion alone. True When issuing a qualified report, the auditor expresses an opinion that is different from an unqualified report. A qualified report may be issued when the scope of the audit is limited or when there is a disagreement with accounting principles. In this case, the qualification can address both the scope and the opinion, or it can be limited to the opinion only. A qualified audit report can indeed take the form of a qualification of both the scope and the opinion, or it can be a qualification of the opinion alone. In a qualified report, the auditor expresses a reservation about certain aspects of the financial statements, indicating that, except for the identified issues, the financial statements are fairly presented.
The qualification of the scope implies that the auditor was unable to obtain sufficient appropriate audit evidence regarding certain matters, limiting the scope of the audit. On the other hand, a qualification of the opinion indicates that, based on the evidence obtained, the financial statements are materially misstated or there is a limitation in the auditor's ability to obtain evidence. So, depending on the circumstances, a qualified report can address issues related to the scope of the audit, the opinion on the financial statements, or both.