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:

Spending Variance

The difference between the actual amount of money spent and the budgeted amount for various categories.

Press Runs

The total number of units produced in one setup or operation of a press machine.

Wages And Salaries

Compensation paid to employees for their labor, including hourly payments (wages) and fixed annual or monthly payments (salaries).

Spending Variance

The difference between the actual amount of money spent and the budgeted or expected amount, indicating over- or under-spending.