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
- Not appropriate because it may tend to overshadow the auditor’s disclaimer of opinion.
- Not appropriate because the auditor is prohibited from reporting on only one basic financial statement.
- Appropriate provided the auditor’s scope paragraph adequately describes the scope limitation.
- Appropriate provided the statement is in a separate paragraph preceding the disclaimer of opinion paragraph.