Which of the Following Is Incorrect Concerning Scope Limitations

question 42

Multiple Choice

Which of the following is incorrect concerning scope limitations?

• A) If client imposed the auditor should be concerned about client trying to prevent discovery of a material misstatement.
• B) An unqualified opinion can result if auditors can perform alternative procedures and are satisfied that the information is fairly stated.
• C) The most common circumstance imposed scope restriction is due to the client changing their auditors.
• D) The most common circumstance imposed scope limitation is when the auditor is appointed after the balance sheet date.

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Definitions:

Potential GDP

The highest level of Gross Domestic Product (GDP) an economy can sustain over a long period without increasing inflation, reflecting its full employment output.

Inflation

A widespread rise in prices and a decrease in the value of money.

Spending Multiplier

A concept in Keynesian economics that quantifies the effect of an increase in autonomous spending on the total economic output.

Potential Output

The highest level of economic output that can be sustained over the long term without increasing inflation.