Which of the Following Scope Limitations Would Ordinarily Be of Most

question 19

Multiple Choice

Which of the following scope limitations would ordinarily be of most concern to the auditors?

• A)The inability to observe inventories because auditors were appointed following the date of the financial statements.
• B)Management's refusal to provide auditors with written representations.
• C)The inability to obtain confirmation of year-end balances from customers because of different billing dates.
• D)The use of the work of component auditors in the audit of group financial statements.

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Definitions:

Clayton Act

A United States antitrust law enacted in 1914, aimed at preventing anticompetitive practices in their incipiency.

Federal Trade Commission Act

The federal law of 1914 that established the Federal Trade Commission.

Alcoa Case

A 1945 case in which the courts ruled that the possession of monopoly power, no matter how reasonably that power had been used, was a violation of the antitrust laws; temporarily overturned the rule of reason applied in the U.S. Steel case.

Structuralist Approach

A methodology in economics and social sciences that focuses on understanding the underlying structures that shape economic outcomes.