Choice "A" is correct. When a qualified opinion results from a limitation on the scope of the audit or an insufficiency of audit evidence, the situation should be described in the Basis for Qualified Opinion paragraph preceding the opinion paragraph and referred to in the opinion paragraph of the auditor's report. It is not appropriate for the scope of the audit to be explained in a note to the financial statements, since the description of the audit scope is the responsibility of the auditor and not that of the client. Choices "b", "d", and "c" are incorrect based on the above explanation.
