Restrictions Imposed by a Retail Entity That Is a New

Multiple Choice

Restrictions imposed by a retail entity that is a new client prevent an auditor from observing any physical inventories. These inventories account for 40% of the entity's assets. Alternative auditing procedures cannot be applied due to the nature of the entity's records. Under these circumstances, the auditor should express a(an) :

A) Disclaimer of opinion.
B) Qualified opinion.
C) Adverse opinion.
D) Unqualified opinion with an explanatory paragraph.