Final answer:
It is false that client-imposed restrictions always require a disclaimer of opinion in an audit. The auditor may issue a different type of opinion based on the impact of the limitations.
Step-by-step explanation:
The statement "Client imposed restrictions on the audit always require a disclaimer of opinion" is False. Although client-imposed restrictions can impact the auditor's ability to perform a full audit, it does not automatically lead to a disclaimer of opinion. The auditor may instead issue a qualified opinion or an adverse opinion, depending on whether the limitation has a material and pervasive effect on the financial statements. The auditor needs to exercise professional judgment to decide on the appropriate type of opinion to issue.
Client imposed restrictions on the audit may impact the auditor's ability to obtain sufficient appropriate audit evidence to form an opinion on the financial statements. However, it does not automatically require a disclaimer of opinion. It depends on the nature and extent of the restrictions and the impact on the auditor's ability to obtain evidence.
For example, if the client restricts access to certain documents or records that are crucial for the audit, the auditor may not be able to obtain sufficient evidence. In such cases, the auditor may issue a disclaimer of opinion. However, if the restrictions are minor and do not significantly impact the audit, the auditor may still be able to form an opinion on the financial statements.