28 If after the accumulation of final evidence and during th

28. If, after the accumulation of final evidence and during the evaluation of results, the auditor concludes that sufficient evidence has not been obtained to draw a conclusion about fairness of the client\'s representations, there are two choices: (Hint: Think of sufficiency of evidence) a. (1) obtain additional evidence, or (2) issue a qualified opinion or a disclaimer. b. (I) issue a qualified opinion, or (2) issue a disclaimer c. (I) issue a disclaimer, or (2) withdraw from the engagement. d. () obtain additional information, or (2) issue an adverse opinion.

Solution

The Correct answer would be Option B

(1) Issue a qualified opinion, or (2) Issue a disclaimer.

Qualified Opinion

The auditor shall express a Qualified Opinion when he is unable to obtain sufficient appropriate audit evidence on the basis of which he forms his audit opinion but he concludes that the effect of undetected misstatements on the financial statements either individually or in aggregate could be material but not pervasive.

Disclaimer of Opinion

The auditor issues a Disclaimer of opinion when he is unable to frame an opinion on the financial statements of his clients. Reasons being when the auditor is unable to conclude that the evidences obtained during the course of audit are sufficient and approrpirate. The auditor will use basis of modification paragraph to state the reasons for his inability to frame an opinion of the financial statements due to the reasons of not obtaining sufficient and approrpirate audit evidences.

Sufficieny of evidence can be referred as measures of quantity of audit evidence which depends on auditor\'s assessement of risk of material misstatements and the quality of such audit evidence.