Final answer:
An auditor issues a disclaimer when there is insufficient audit evidence to form an opinion, not necessarily because the financial statements are not fairly presented. An adverse opinion, not a disclaimer, is given when the financial statements are believed to be misrepresented.
Step-by-step explanation:
An auditor may issue a disclaimer of opinion rather than a negative opinion if the auditor was unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.
This is different from a situation where the auditor believes that the financial statements are not fairly presented. In such cases, the auditor would potentially issue an adverse opinion, not a disclaimer. A disclaimer is typically issued when there are substantial uncertainties or scope limitations that prevent the auditor from forming an opinion on the fairness of the financial statements.