The most common case in which conditions beyond both the client's and the auditor's control cause a scope limitation is an engagement agreed upon after the client's balance sheet date.

Question

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If the engagement is agreed upon after the client's balance sheet date, it may be impossible for the auditor to obtain sufficient appropriate evidence about the completeness and accuracy of the balances and transactions included in the financial statements. This is because the auditor was not physically present during the period under audit and cannot observe the client's operations and transactions during that time. This is a common example of a situation where conditions beyond the client's and auditor's control result in a scope limitation.

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