It is more difficult to evaluate the materiality of potential errors resulting from a scope limitation than from a:
A) misstatement in the financial report.
B) going concern disclosure.
C) both A and B
D) none of the above

Question

Quizplus · Accepted Answer

Misstatements in the financial report are more easily identifiable and quantifiable, whereas errors resulting from a scope limitation may be more subjective and difficult to assess in terms of their potential impact on the overall financial report. Therefore, it is more difficult to evaluate the materiality of potential errors resulting from a scope limitation compared to a misstatement in the financial report.

It Is More Difficult to Evaluate the Materiality of Potential