When auditors are engaged to examine an entity's financial statements but decide to issue a disclaimer of opinion because of a scope limitation, the report would not
A)identify management's responsibility for the financial statements.
B)refer to any scope limitation in the Basis for Opinion Section.
C)identify the scope limitation as a critical audit matter.
D)indicate that the auditors were engaged to audit the financial statements in the Disclaimer of Opinion on the Financial Statements section.

Question

Quizplus · Accepted Answer

Critical audit matters are those matters that were communicated with those charged with governance and that relate to accounts or disclosures that are material to the financial statements and involved especially challenging, subjective, or complex auditor judgment. A scope limitation prevents the auditor from obtaining sufficient appropriate audit evidence and does not relate to the complexity or judgment involved in auditing material accounts or disclosures. Therefore, a scope limitation would not be identified as a critical audit matter in the auditor's report.

When Auditors Are Engaged to Examine an Entity's Financial Statements