The most common case in which conditions beyond the client's and auditor's control cause a scope limitation is an engagement:
A) where the auditor doesn't have enough staff to satisfactorily audit all of the client's foreign subsidiaries.
B) agreed upon after the client's balance sheet date.
C) where the client won't allow the auditor to confirm receivables for fear of offending its customers.
D) where the client is going through bankruptcy.

Question

Quizplus · Accepted Answer

If an engagement is agreed upon after the client's balance sheet date, it may not be possible for the auditor to obtain sufficient audit evidence for all transactions and events for the entire period under audit. This would result in a scope limitation that is beyond the control of both the client and the auditor. Choices A, C, and D may also result in scope limitations, but they are not the most common causes of scope limitations.

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