The Most Common Case in Which Conditions Beyond the Client's

question 117

Multiple Choice

The most common case in which conditions beyond the client's and auditor's control cause a scope restriction is an engagement:

• A) agreed upon after the client's balance sheet date.
• B) where the client won't allow the auditor to confirm receivables for fear of offending its customers.
• C) where the auditor doesn't have enough staff to satisfactorily audit all of the client's foreign subsidiaries.
• D) where the client is going through Chapter 11 bankruptcy.