You have accepted an appointment to audit the financial statements of Hippo Ltd for the year ended 31 December 20X1. The financial statements of the company for the year ended 31 December 20X0 were unaudited. In relation to the opening balances in the 31 December 20X1 financial statements, you need to issue:

(a) a disclaimer of opinion where you cannot obtain sufficient appropriate audit evidence on the opening balances.

(b) an adverse opinion where you cannot obtain sufficient appropriate audit evidence on opening balances.

(c) an unqualified report because of representations of management.

(d) an unqualified report after advising the appropriate regulatory authority that the previous year’s report was unaudited.

Choose the best answer.