When dealing with materiality and scope limitation conditions,
A)a disclaimer of opinion must be issued.
B)it is easier to evaluate the materiality of potential misstatements resulting from a scope limitation than for failure to follow GAAP.
C)scope limitations imposed by the client are always considered material.
D)a unqualified opinion may still be issued depending on the materiality of the scope limitation.

Question

Quizplus · Accepted Answer

A scope limitation does not necessarily require a disclaimer of opinion or deemed to be material. If the auditor believes that the effect of the limitation is immaterial, an unqualified opinion can still be issued. The materiality of potential misstatements resulting from a scope limitation is difficult to evaluate as it depends on the circumstances. Lastly, scope limitations imposed by the client are not always considered material.

When Dealing with Materiality and Scope Limitation Conditions