Question

Which of the following is an example of circumstances that would not limit the audit scope?

a. An inadequacy in the accounting records.
b. The inability to gather sufficient competent evidence.
c. Emphasis of an important matter.
d. The timing of the fieldwork.

Answer 1

Emphasis of an important matter is an example of circumstances that would not limit the audit scope, as it is a normal part of an auditor's report to highlight specific areas without restricting the overall audit.

Step-by-step explanation:

An example of circumstances that would not limit the audit scope among the choices provided is c. Emphasis of an important matter. This is because emphasizing an important matter is a part of the auditor’s report where a specific area is highlighted, but it does not limit the ability of the auditor to review the entire set of financial statements. Options a (An inadequacy in the accounting records) and b (The inability to gather sufficient competent evidence) would indeed limit the audit scope as they restrict the auditor's ability to perform the audit. Option d (The timing of the fieldwork) could pose a logistical challenge but would not necessarily limit the audit scope unless it prevented the auditor from being able to complete an aspect of the audit work.