Question

Due to a scope limitation, an auditor disclaimed an opinion on the financial statements taken as a whole, but the auditor's report included a statement that the current asset portion of the entity's balance sheet was fairly stated. The inclusion of this statement is_________.

Answer 1

The correct answer to the following question will be "Not suitable, as it might appear to undermine the disclaimer of the viewpoint of the auditor".

Step-by-step explanation:

• Piecemeal opinions (viewpoints on portions of the financial reporting, where those parts form a large part of the legal assertions) aren't sufficient if the auditor has attempted to claim a decision or given an unfavorable opinion because they could outweigh the view of the auditor on either the financial reports viewed itself.
• An opinion may be based on stated items that don't always represent an opinion of piecemeal, but it shouldn't include the warning as well as the undesirable opinion.