Question

If a scope limitation is material, _______.

A) Auditors cannot state a conclusion without evidence to support the conclusion
B) Auditors should state a conclusion even without evidence to support the conclusion
C) It is of no relevance to the financial statements and their users
D) The auditor should immediately withdraw from the engagement.

Answer 1

If a scope limitation is material, auditors cannot state a conclusion without evidence to support the conclusion.

Step-by-step explanation:

If a scope limitation is material, the correct answer is A) Auditors cannot state a conclusion without evidence to support the conclusion.

1. When a scope limitation exists, auditors are unable to obtain sufficient appropriate evidence in relation to a specific audit objective or set of audit objectives.
2. This lack of evidence hinders auditors from forming a conclusion regarding the financial statements being audited.
3. Without adequate evidence, auditors cannot provide a statement or opinion on the financial statements without risking misleading the users of those financial statements.