Multiple Choice
A client's lawyer is unable to form a conclusion about the likelihood of an unfavorable outcome of pending litigation because of inherent uncertainties. If the litigation's effect on the client's financial statements could be material but it is properly disclosed in the financial statements, the auditor most likely would:
A) Issue a qualified opinion in the auditor's report because of the lawyer's scope limitation.
B) Withdraw from the engagement because of the lack of information furnished by the lawyer.
C) Disclaim an opinion on the financial statements because of the materiality of the litigation's effect.
D) Issue an unqualified opinion without modification.
Correct Answer:
Verified
Correct Answer:
Verified
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