What is a Disclaimer of Opinion?

A disclaimer of opinion is a statement made by an auditor that no opinion is being given regarding the financial statements of a client. This disclaimer may be given for several reasons. For example, the auditor may not have been allowed or been able to complete all planned audit procedures. Or, the client restricted the scope of the examination to such an extent that the auditor was unable to form an opinion. If the client allows the auditor to complete planned work, or rectifies an underlying irregularity, then the auditor may be able to issue a clean opinion. Until the auditor issues a replacement opinion, the disclaimer remains in force.