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a company may receive adverse opinion if the company's F/S statement is misrepresented, misstated and do not accurately reflect its financial performance while disclaimer the auditor has a limitation in scope imposed by the company as a result the auditor is unable to obtain sufficient audit evidence and also the conflict of interest.
Auditor Believe that Financial statement is meaning less than he gives adverse opinion and for disclaimer mean then auditor was not able to get proper evidence to give opinion due to limitation of scope as not access to gather full evidence.
The Independent External Auditor prepares the report on the audit of the Company's financial statements.1. Opinion without reservation (clean opinion)2. Opinion with reservation (restricted opinion)Negative opinion (opposite)34. Refrain from expressing an opinion As an example, the controller is not allowed to contact customers by sending the ratifications to verify the validity of the balances with the company subject of review and examination in that
case must be explained in his report as follows
Refrain from expressing "Disclaimer's Opinion"Since the Controller can not be given a technical opinion on the audited financial statements because of restrictions imposed by the management of the company prevented him from starting his workThe references provide an opposite view in case there is a material physical distortion.The auditor also provides a conservative opinion in the event of events affecting the financial statements as an example of insufficient provision for doubtful debts and no provision for liabilities to the company under a judgment or dispute likely to be rendered in favor of the company and other reasons.
If the financial statements of the company are misrepresented and do not represent accurate financial position of the company then a company receives adverse opinion or a disclaimer opinion.
