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is the reference in the auditors’ report to work performed by component auditors a scope limitation? explain.

User Feng Liu
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The reference in the auditors' report to work performed by component auditors is not necessarily a scope limitation. A scope limitation occurs when the auditor is unable to obtain sufficient appropriate audit evidence to support their opinion due to circumstances beyond their control. The reference to component auditors in the auditors' report is simply a disclosure that part of the audit was performed by other auditors, rather than the principal auditor. This disclosure is required when the principal auditor has used the work of other auditors to obtain audit evidence in significant areas of the audit. The disclosure is not a limitation on the scope of the audit, but rather a transparency measure to inform the users of the financial statements that the audit was conducted by multiple auditors.
User Bala Anirudh
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