The following are notes to recognize on disclaimer of opinions:
Independent Auditor’s Report
Report on the Financial Statements
We were engaged to audit the accompanying financial statements of [xxx] which comprise the balance sheet as of [date], and the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair representation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on conducting the audit in accordance with auditing standards generally accepted in the United States of America. Because of the matters described in the Basis for Disclaimer of Opinion paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
Basis for Disclaimer of Opinion
We were not engaged as auditors [company and date], and therefore did not observe the ... [reasons for disclaimer] ...As a result of these matters, we were unable to determine whether any adjustments might have been found necessary in respect [reason for disclaimer] and the elements making up the statements of income, changes in stockholders' equity, and cash flows.
Disclaimer of Opinion
Because of the significance of the matters described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express and opinion on these financial statements.
[Auditor's city and state]
[Date of the auditor's report]