Disclaimer of Opinion refers to an auditor's statement disclaiming any opinion regarding the company's financial condition due to an inability to gather certain relevant facts. This type of statements makes it clear that the auditor is not in a position to express a specific opinion on the overall status of the financial records of the client. It can be issued when there is any type of irregularity that the auditor is not able to reconcile to his or her satisfaction.
The disclaimer of opinion remains in effect until the client makes the necessary adjustments to the accounting records that bring the documents into full compliance with accounting standards. At that time, an auditor can re-evaluate the financials and determine if all outstanding issues have been addressed properly. Once an opinion has been issued by the auditor, the previous disclaimer of opinion is considered null and void.