Which of the Following Scope Limitations Would Ordinarily Be of Most

question 112

Multiple Choice

Which of the following scope limitations would ordinarily be of most concern to the auditors?

• A) The inability to observe inventories because the auditors were appointed following the date of the financial statements.
• B) Management's refusal to provide written representations to the auditors.
• C) The inability to obtain confirmation of year-end balances from customers because of different billing dates.
• D) The use of the work of component auditors in the audit of group financial statements.

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Definitions:

Data

Information collected and used for analysis or decision making, often in a structured form.

Common Size Percentages

Ratios used in financial analysis that express each line item on a financial statement as a percent of a base amount, facilitating comparison.

Operating Expenses

Costs incurred in the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and salaries.