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regarding scope limitation


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#1 woogiboogi

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Posted 22 January 2014 - 01:27 AM

here is the question from wiley test bank

 

Q.which auditor action(s) are possible when that auditor incurs scope limitation relating to a public company engagement on whether a previously reported material weakness continue to exist?

 

Choice

I. Qualified

II. disclaimer

 

i chose both but the answer says only "disclaimer" does anyone know why? 



#2 ruggercpa2b

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Posted 02 February 2014 - 08:53 PM

According to Yaeger, a situation-imposed scope limitation would most likely result in a qualified opinion (i.e. subsidiary in a foreign country that you can't audit because of circumstances). A client-imposed scope limitation would most likely result in a disclaimer (i.e. client won't ALLOW you access to records you need). So basically, if the auditor says they can't do something, it's qualified. If the client says you can't do something, it's a disclaimer.