Which of These Would Not Be Considered a Scope Limitation

question 25

Multiple Choice

Which of these would not be considered a scope limitation?

• A)Access to the board of directors meetings was limited to those meetings taking place before the balance sheet date.
• B)The auditor is appointed to the engagement too late to observe the client's counting of the inventory.
• C)The auditor is forced to call upon an outside expert to properly value antiques that are held in the client's vault as investments.
• D)The client would not permit confirmation of receivables with their best customers for fear of annoying the customers.

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Definitions:

Risk Avoidant

Characterizes individuals or strategies that prioritize minimizing potential losses or risks.

Justice Principle

The ethical concept that emphasizes fairness and the equitable treatment of individuals in decision-making processes and distribution of resources.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.