Where there are scope limitations, the size of potential errors is important in determining the appropriate form of the audit report.

Question

Quizplus · Accepted Answer

When there are scope limitations, the auditor's ability to obtain sufficient evidence to support their opinion is restricted. Therefore, the auditor needs to consider the size of potential errors in the financial statements and how it may impact their audit conclusion. This consideration is important in determining the appropriate form of the audit report.

Where There Are Scope Limitations, the Size of Potential Errors