Which statement about disclaimer of opinion in cases of material uncertainty or going concern problems is true?

• A. The auditor is required to issue a disclaimer of opinion in the event of a material uncertainty.
• B. The auditor is required to issue a disclaimer of opinion in the event of a going concern problem.
• C. The auditor is required to issue a disclaimer of opinion for a material uncertainty and for a going concern problem.
• D. The auditor has the option, but is not required, to issue a disclaimer of opinion for a material uncertainty or for a going concern problem.

Answer: (D)

Disclaimers are one possible auditor’s opinion, but they aren’t automatic whenever there’s a material uncertainty or a going-concern issue. The auditor’s decision depends on how pervasive the uncertainty is and whether enough evidence can be obtained to form an opinion. If the uncertainty is material but not pervasive, the auditor might use an emphasis-of-matter paragraph or even issue a qualified or unmodified opinion, depending on evidence. If the evidence is unobtainable or the effects are so pervasive that no opinion can be formed, a disclaimer becomes appropriate. Because of this flexibility, the auditor has the option to issue a disclaimer in these situations, but is not required to do so.