Question

Among situations that could cause auditors to issue a modified opinion, which of the following is a case of pervasively material scope limitations?

1) Financial statements are not presented fairly and should not be relied upon.
2) Auditor was not able to gather sufficient appropriate evidence and cannot express an opinion on the financial statements.
3) Financial statements are presented fairly, except for the uncorrected departure(s).
4) Financial statements are presented fairly, except for the auditor's inability to gather evidence for one material item.

Answer 1

Pervasively material scope limitations occur when the auditor is unable to gather sufficient appropriate evidence and cannot express an opinion on the financial statements.

Step-by-step explanation:

Pervasively material scope limitations occur when the auditor is unable to gather sufficient appropriate evidence and cannot express an opinion on the financial statements. This is option 2 from the given choices. When a modified opinion is issued due to pervasively material scope limitations, it means that the auditor was not able to obtain enough evidence to form an opinion on the overall fairness of the financial statements.