Consider yourself as an auditor of an independent firm. Recently, you have been assigned to do the audit of a small family owned firm named ABC Incorporation Ltd. In this regards, you wrote a letter to previous auditors and obtained a sets of statutory accounts for the last 3 years. You found out that the previous auditor opinion was "qualified opinion" on the basis of non-compliance with an accounting standard i.e. FRS 16 which is related to valuation of property, plant and equipment. The report posits that the auditors were not able to quantify the impact of this non-compliance. You became suspicious and tried to access the working papers of previous auditors, however, you were unable to get hands on the required documents. Upon your request, Mr. Ahmad, managing director of the company visited you and provided you an oral briefing. Further, upon the review of the audit files of the company you found out that the turnover of the company was around Rs. 17 million with a profit of Rs. 2,700,000. However, you observed that the company did not conduct a proper FRS 16 valuation again. You realise that this scenario leads towards a limitation of scope.

Requirement:

On the basis of above given scenario, you are advised to discuss the type of opinion which fits the situation. Further, justify your opinion with proper justification.