A scope limitation in regards to and audit of internal control over financial reporting (ICFR) occurs when the auditors_______.
A)are able to audit all of a client's accounts without issue
B)cannot perform planned procedures to gather sufficient appropriate evidence regarding the design and effectiveness of a client's internal controls
C)cannot perform planned procedures to gather sufficient appropriate evidence regarding the design and effectiveness of a client's financial statements
D)have not been prepaid for audit services, and is unable to collect the associated receivable

Question

Quizplus · Accepted Answer

A scope limitation occurs when auditors cannot perform planned procedures to gather sufficient appropriate evidence regarding the design and effectiveness of a client's internal controls. This may be due to a variety of reasons, such as restricted access to information or events beyond the auditors' control. A scope limitation does not relate to whether all of a client's accounts can be audited or whether prepaid audit services are collected.

A Scope Limitation in Regards to and Audit of Internal