Disclaimer of opinion definition

What is a Disclaimer of Opinion?

A disclaimer of opinion is a statement made by an auditor that no opinion is being given regarding the financial statements of a client. If the client allows the auditor to complete planned work, or rectifies an underlying irregularity, then the auditor may be able to issue a clean opinion . Until the auditor issues a replacement opinion, the disclaimer remains in force.

Reasons for a Disclaimer of Opinion

A disclaimer of opinion may be given for several reasons, which are as follows:

Blocked procedures . The auditor may not have been allowed or been able to complete all planned audit procedures .
Restricted scope . The client restricted the scope of the examination to such an extent that the auditor was unable to form an opinion.