Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a
A) disclaimer of opinion in all cases.
B) qualification of both scope and opinion in all cases.
C) disclaimer of opinion whenever materiality is in question.
D) qualification of both scope and opinion whenever materiality is in question.

Question

Quizplus · Accepted Answer

When a client imposes restrictions on the scope of the audit, it raises concerns about the potential for undiscovered misstatements. If these restrictions affect the auditor's ability to obtain sufficient appropriate audit evidence, especially regarding material aspects of the financial statements, the auditor may issue a disclaimer of opinion. This is because the auditor cannot conclude on the overall fairness of the financial statements due to the scope limitation.

Whenever the Client Imposes Restrictions on the Scope of the Audit