A disclaimer of opinion arises in situations such as lost records, management failing to provide significant information and documents, or multiple uncertainties existing together. The auditor states clearly that no conclusion could be reached on the financial statements.
It differs from an adverse opinion in that the auditor has not identified misstatements but has been unable to obtain evidence on which to base an assessment.
Source: BDS 705
Related terms
Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Qualified opinionThe opinion the auditor expresses when misstatements, or a lack of evidence, are material but not pervasive.Audit evidenceAny information and documents the auditor uses to reach the conclusions on which the opinion is based.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.Assurance engagementAn engagement providing assurance, against specified criteria, on a subject matter other than an audit or review of historical financial information.
Last updated: October 22, 2026 · This definition is for general information only.