Get premium membership and access questions with answers, video lessons as well as revision papers.

Briefly explain the types of audit opinion that would normally arise from a limitation in the scope of audit.

      

Briefly explain the types of audit opinion that would normally arise from a limitation in the scope of audit.

  

Answers


Wilfred
- If for any reason the auditor is unable to receive all the information and explanation he deems necessary for the purposes of his audit then there has been a limitation in the scope of his work. It means that the auditor is unable to conclude objectively because he is unable to obtain sufficient appropriate audit evidence

Effect of a limitation in scope on the auditor‘s opinion
- If the possible effect of a limitation on scope of an audit is material but not fundamental to the financial statements the auditor issues a qualified opinion (except for opinion) If the possible effect of a limitation on scope of an audit is of fundamental importance that the auditor is unable to express an opinion on the financial statements, the auditor issues a disclaimer of opinion as mentioned above.
- When there is a limitation on the scope of the auditor‘s work that requires the expression of a qualified opinion or disclaimer of opinion, the auditor should describe the nature of the limitation in his report and indicate the possible adjustments to the financial statements that might have been determined to be necessary, had the limitation not existed.
Wilfykil answered the question on February 22, 2019 at 07:43


Next: Explain the factors that external auditors should consider in determining whether the financial statements of a limited company show a true and fair view
Previous: Identify five audit benefits that could be derived from using Computer Assisted Audit Techniques (CAATs) when carrying out testing of computer records

View More CPA Auditing and Assurance Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions