The auditor might also issue a disclaimer audit opinion if the major of transactions or events in the financial statements involve high judgment, and management could not justify those transactions or events sufficiently according to the accounting standard that they are using.
Lack of communication and clarification is also one of the reasons that lead to misunderstanding and then subsequently leads to a lack of supporting documents.įor example, management does not trust auditors and they do not agree to provide the payroll list. There is the intention of the management of the entity not to provide the supporting documents due to a lack of trust in auditor independence.
Managements do not have proper control to keep those supporting documents secured and subsequently lost. It can be because management does not have enough documents to support their accounting transactions or event. There are many reasons why auditors could not obtain sufficient and appropriate supporting documents. Disclaimer opinion issues by auditors to financial statements when they could not obtain sufficient and appropriate financial statements to draw the conclusion or support their opinion.
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