If the auditors do not have access to all the information relevant to the audit, this is known as a(an) ________.
A)material misstatement
B)limitation in scope
C)estimate
D)sampling technique

Question

Quizplus · Accepted Answer

A limitation in scope occurs when auditors cannot obtain all the necessary information to perform an adequate audit. This can be due to factors such as restrictions from the client, unavailable records or documents, or incomplete financial information. A material misstatement is a significant error or omission in the financial statements that could potentially affect the decisions of users of the financial statements. An estimate is a judgment made by management in determining certain values in the financial statements, such as the useful life of assets. Sampling technique is a method used to select a representative subgroup from a larger population for testing.

If the Auditors Do Not Have Access to All the Information