Question

For the report containing a disclaimer for lack of independence, the disclaimer is in the?

1) second or scope paragraph
2) third or opinion paragraph
3) first and only paragraph
4) fourth or explanatory paragraph

Answer 1

The disclaimer for lack of independence is usually included in the third or opinion paragraph of an audit report.

Step-by-step explanation:

When an audit report includes a disclaimer for lack of independence, the disclaimer is typically presented in the third or opinion paragraph. In the context of an audit report structure, the first paragraph serves as the introduction, the second paragraph is often the scope paragraph, where the auditors discuss the nature of their audit, the third paragraph contains the opinion on the financial statements, including disclaimers if necessary, and any subsequent paragraphs would include further explanations or details on specific aspects of the audit (as might be contained in a fourth or explanatory paragraph).