When is a disclaimer of opinion typically issued?

A disclaimer of opinion is issued when the auditor is unable to gather sufficient evidence to form a definitive conclusion about the financial statements. This situation may arise due to various factors, such as limitations in the scope of the audit, the inability to access necessary information, or significant uncertainties regarding the company's financial status. Essentially, a disclaimer indicates that the auditor cannot express an opinion on whether the financial statements present a true and fair view, often highlighting the absence of critical evidence that prevents a comprehensive evaluation.

In contrast, significant issues in the financial statements usually lead to an adverse opinion or a qualified opinion, not a disclaimer. A clean audit report indicates that the auditor has completed the review and found no issues, thus contradicting the nature of a disclaimer. Lastly, compliance with laws being confirmed does not directly relate to the issuance of a disclaimer, as that would typically pertain to other types of inquiries beyond just a lack of evidence.