Final answer:
When an auditor lacks sufficient information to express an opinion, a scope limitation arises, possibly leading to a disclaimer of opinion. Imperfect information in economic transactions can create asymmetric information between buyers and sellers, complicating price agreements due to uncertain qualities or credibility.
Step-by-step explanation:
When an auditor does not have sufficient information to express an opinion, this situation is known as a scope limitation. A scope limitation occurs when the auditor cannot obtain enough appropriate evidence to form a conclusion. This can result from various factors, such as the client's restriction on the auditor's access to relevant data or significant uncertainties within the company's operations.
Without enough evidence, auditors are unable to fulfill their objective of assuring the financial statements. In such cases, auditors may issue a disclaimer of opinion or withdraw from the engagement if the issue is so pervasive that it precludes forming an opinion.
A similar concept applies in economics with imperfect information, which describes a situation where buyers and sellers lack complete knowledge about the transactional product or service. This lack of information can lead to difficulties in agreeing on a price due to asymmetric information and uncertainties about the product's quality or the seller's credibility, thus affecting market efficiency.