Disclaimer of Opinion is rendered during an audit due to severe restrictions and limitations of performing an audit. Two common restrictions are the inability to acquire financial statements from the client, or a management representation letter. It is mandatory for the auditor to be able to possess these documents therefore if the auditor cannot obtain them the audit cannot be completed; hence he/she cannot issue an opinion.
Hierarchy of Opinions:
- Unqualified Opinion
- Qualified Opinion
- Adverse Opinion
- Disclaimer of Opinion