Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2025 - Free CPA Practice Questions and Study Guide

When an auditor disclaims an opinion due to a client-imposed scope limitation, it is necessary to revise both the Auditor's Responsibility paragraph and the Opinion paragraph in the audit report.

The Auditor's Responsibility paragraph provides insight into the auditor's duties and the accountability taken during the audit. In the case of a disclaimer, this section needs to articulate the limitations the auditor experienced in obtaining sufficient appropriate audit evidence. This helps readers understand the context of the disclaimer and that the limitations were not based on the auditor's performance, but rather on circumstances imposed by the client.

The Opinion paragraph is equally crucial to revise, as it directly communicates the auditor's opinion regarding the financial statements. Since a disclaimer signifies that the auditor cannot express an opinion, the wording in this paragraph must reflect that the auditor does not provide any opinion on the financial statements because the scope was limited.

By revising both sections, the auditor ensures clear communication of the limitations faced during the audit and provides a transparent view of the implications of those limitations for users of the financial statements.