Disclaimer of opinion
Financial Dictionary — Auditing Reports
Definition
Issued when the auditor cannot obtain sufficient appropriate evidence.
Detailed Explanation
A disclaimer of opinion is issued when the auditor cannot obtain sufficient appropriate audit evidence.
Common Uses
- Used in audit planning to understand risks and design procedures.
- Used during testing (controls/substantive) and documentation of audit evidence and conclusions.
- Used during testing (controls/substantive) and documentation of audit evidence and conclusions.
Practical Example
- Example: The auditor references **Disclaimer of opinion** when designing procedures and documenting conclusions in the audit file.
Why This Term Matters
- Why it matters: Supports high-quality, defensible audit conclusions and helps detect material misstatements and control weaknesses.