Disclaimer of Opinion

A Disclaimer of Opinion is a statement made by an auditor when they cannot provide an opinion on a company’s financial statements. This typically occurs when the auditor lacks sufficient information or when there are significant uncertainties impacting the financial statements. Instead of giving a standard opinion (either positive or negative), the auditor essentially says they cannot assess the financial statements due to these limitations. It is important for stakeholders, like investors or creditors, to understand this disclaimer as it highlights potential risks or issues in the company's financial reporting.