It is typically more difficult to evaluate the materiality of potential misstatements resulting from a scope limitation than for failure to follow GAAP.

Question

Quizplus · Accepted Answer

When there is a scope limitation, it may be difficult to determine the potential impact on the financial statements without the additional information that cannot be obtained due to the limitation. On the other hand, failure to follow GAAP can often be evaluated based on established accounting principles and standards.

It Is Typically More Difficult to Evaluate the Materiality of Potential