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:

Remedial Action

Actions taken to correct or mitigate a problem, often used in contexts of policy, environmental issues, or workplace errors.

Executive Action

Decisions or measures taken by an executive branch of government, including the President or executives within organizations, often involving policy enforcement or implementation.

Forecasting

Forecasting is the process of making predictions about future events or trends based on current and historical data analysis, widely used in fields such as economics, weather, and business planning.

Environmental Changes

Alterations in the surrounding conditions, including social, economic, political, and natural environments that can impact organizations and individuals.