What triggers the issuance of a disclaimer of opinion report?

A disclaimer of opinion report is issued when the auditor cannot gather sufficient evidence to form an opinion on the financial statements due to scope limitations or significant uncertainties. This situation may arise if the auditor is unable to perform necessary audit procedures because of restrictions placed on them, whether by management or by circumstances beyond their control.

In such cases, the auditor is unable to reach a conclusion about whether the financial statements are free from material misstatement, leading to the decision to issue a disclaimer. This underscores the importance of having access to relevant information and sufficient evidence to form a basis for their opinion. Auditors must adhere to standard auditing guidelines, and when they cannot do so, it directly impacts their ability to provide a positive or negative opinion.

Other options do not accurately reflect the conditions under which a disclaimer occurs. Minor discrepancies may not warrant a disclaimer and could instead lead to an adverse opinion or a qualified opinion. Clear non-compliance with GAAP typically results in an adverse opinion rather than a disclaimer. Complete accuracy and reliability are positive outcomes and would lead to an unmodified opinion, not a disclaimer.