When a Circumstance-Imposed Scope Limitation Has a Material but Not

question 105

Multiple Choice

When a circumstance-imposed scope limitation has a material but not pervasive effect on the sufficiency of the auditors' evidence, the auditors' report will

• A)modify the Opinion on the Financial Statements section and Basis for Opinion section.
• B)modify the Opinion on the Financial Statements section only.
• C)modify the Basis for Opinion section only.
• D)modify the Opinion on the Financial Statements section and notes to the financial statements.

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Definitions:

Stratified Random Sample

A method of sampling that involves dividing a population into smaller groups, known as strata, and then randomly selecting samples from each stratum.

Sample Standard Deviation

Sample standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is computed from the square root of the variance of the sample.

Sample Mean

The average value computed from a sample of a population, used as an estimate of the population mean.

Population Mean

The population mean is the average of all the values in a population. It is a measure of central tendency that summarises the characteristic of the entire population.