Question

A restriction on the scope of the auditor's examination requires?

1) a qualifying paragraph to be included in the introduction.
2) a qualifying paragraph preceding the opinion paragraph.
3) a disclaimer opinion.
4) a basis for a qualified opinion paragraph.

Answer 1

A restriction on the scope of the auditor's examination requires a qualifying paragraph to be included in the introduction before the opinion paragraph.

Step-by-step explanation:

A restriction on the scope of the auditor's examination requires a qualifying paragraph to be included in the introduction. This qualifying paragraph is usually placed before the opinion paragraph. It explains that the auditor's examination was limited in some way, such as due to restricted access to certain documents or limitations in the available evidence. This qualifying paragraph alerts the reader to the restricted scope of the audit and provides context for the subsequent opinion paragraph.