Assume a situation in which an attorney who provided significant litigation counsel to a client to refuses to furnish information requested in an audit. Which of the following descriptions best describes this situation from the auditor's perspective?
A) A departure from GAAP.
B) A scope limitation.
C) A violation of the attorney-client privilege.
D) A contingent liability.

Question

Quizplus · Accepted Answer

When an attorney refuses to furnish information requested in an audit, it is considered a scope limitation because the auditor is unable to obtain all the necessary information to provide an unqualified opinion on the financial statements. It is not a departure from GAAP, a violation of the attorney-client privilege, or a contingent liability, as these terms do not accurately reflect the situation.

Assume a Situation in Which an Attorney Who Provided Significant