When Dealing with Materiality and Scope Limitation Conditions

question 142

Multiple Choice

When dealing with materiality and scope limitation conditions,

• A)a disclaimer of opinion must be issued.
• B)it is easier to evaluate the materiality of potential misstatements resulting from a scope limitation than for failure to follow GAAP.
• C)scope limitations imposed by the client are always considered material.
• D)a unqualified opinion may still be issued depending on the materiality of the scope limitation.

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Definitions:

Casualties

Individuals who are killed, wounded, or missing in action due to conflict, accidents, or disasters.

Union Army

The land force that fought for the Northern states during the American Civil War, primarily against the Confederate Army of the Southern states.

Farm Boys

Typically young males who worked on farms, either as part of their family’s livelihood or as hired hands, especially prevalent in agricultural societies.

Artisans

Skilled craftworkers who make products by hand, often both creating and selling their goods.