Whenever the Client Imposes Restrictions on the Scope of the Audit

question 74

Multiple Choice

Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a

• A) disclaimer of opinion in all cases.
• B) qualification of both scope and opinion in all cases.
• C) disclaimer of opinion whenever materiality is in question.
• D) qualification of both scope and opinion whenever materiality is in question.

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Definitions:

Defamation

The act of damaging someone's reputation through false statements, either spoken (slander) or written (libel).

Duty to Be Careful

An obligation to act with a reasonable level of care and caution to avoid harm to others or their property.

Business Interruption

An event that causes significant disruption to the normal operations of a business, potentially leading to financial loss.

Tort

A wrongful act or infringement of a right leading to civil legal liability, not arising from a contract.