A limitation on the scope of the audit sufficient to preclude an unmodified opinion is most likely to result when management
A. Asks the auditor to report on the balance sheet and not on the other basic financial statements.
B. Refuses to permit its lawyer to respond to the letter of audit inquiry.
C. Discloses material related party transactions in the notes to the financial statements.
D. Knows that confirmation of accounts receivable is not feasible.
Ans: B. Refuses to permit its lawyer to respond to the letter of audit inquiry.
You might also like to view...
Collecting demographic information that can be used in direct mail campaigns is mentioned in the text as a specific objective of a questionnaire
Indicate whether the statement is true or false
The concept of mobility between castes within an individual's lifetime makes no sense to traditional Hindus
Indicate whether the statement is true or false.