B is corrent because the client’s refusal is a client-imposed scope limitation, and such scope limitations ordinarily result in a disclaimer of opinion.
A is incorrect because scope limitations do not result in unmodified opinions with explanatory paragraphs.
C is incorrect because an adverse opinion is issued when the auditor believes that the financial statements taken as a whole are not presented fairly in conformity with GAAP.
D is incorrect because an unmodified opinion is unlikely to be appropriate due to the importance of the inquiry of outside legal counsel.
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