Question: Due to a scope limitation, an auditor disclaimed an opinion on the financial statements taken as a whole, but the auditors report included a statement

Due to a scope limitation, an auditor disclaimed an opinion on the financial statements taken as a whole, but the auditor’s report included a statement that the current asset portion of the entity’s balance sheet was fairly stated. The inclusion of this statement is

a. Not appropriate because it may tend to overshadow the auditor’s disclaimer of opinion.

b. Not appropriate because the auditor is prohibited from reporting on only one basic financial statement.

c. Appropriate provided the auditor’s scope paragraph adequately describes the scope limitation.

d. Appropriate provided the statement is in a separate paragraph preceding the disclaimer of opinion paragraph.

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