Question

Which of the following is incorrect concerning scope limitations?

1) If client imposed, the auditor should be concerned about the client trying to prevent discovery of a material misstatement.
2) An unqualified opinion can result if auditors can perform alternative procedures and are satisfied that the information is fairly stated.
3) The most common circumstance imposed scope restriction is due to the client changing their auditors.
4) The most common circumstance imposed scope limitation is when the auditor is appointed after the balance sheet date.

Answer 1

The incorrect statement concerning scope limitations is if the client imposed, the auditor should be concerned about the client trying to prevent discovery of a material misstatement. The most common circumstance imposed scope restriction is due to the client changing their auditors.

Step-by-step explanation:

The incorrect statement concerning scope limitations is: If client imposed, the auditor should be concerned about the client trying to prevent discovery of a material misstatement. Scope limitations are circumstances that restrict the extent of an audit. They can be client-imposed or CPA-imposed. The other three statements are correct: An unqualified opinion can result if auditors can perform alternative procedures and are satisfied that the information is fairly stated. The most common circumstance imposed scope restriction is due to the client changing their auditors.

concerning scope limitations is if the client imposed, the auditor should be concerned about the client trying to prevent discovery of a material misstatement. The most common circumstance imposed scope restriction is due to the client changing their auditors. The most common circumstance imposed scope limitation is when the auditor is appointed after the balance sheet date.