Restrictions imposed by the client prohibit the observation of physical inventories, which accounts for 35% of client's recorded assets. Alternative auditing procedures cannot be applied, although satisfactory evidence for all other accounts is obtained. The auditor should issue what type of audit opinion?
Disclaimer because it is not following the generally accepted accounting standards and has a serious scope limitation because of the 35% of client's recorded assets is prohibited. Greater than 1% is considered to be serious the example has 35% of its assets prohibits the observation of physical inventories.