Which of the following scope limitations would ordinarily be of most concern to the auditors?
A) The inability to observe inventories because the auditors were appointed following the date of the financial statements.
B) Management's refusal to provide written representations to the auditors.
C) The inability to obtain confirmation of year-end balances from customers because of different billing dates.
D) The use of the work of component auditors in the audit of group financial statements.

Question

Quizplus · Accepted Answer

Management's refusal to provide written representations to the auditors is of most concern as these representations provide evidence of management's responsibility and accountability for the financial statements. Without them, the auditor's ability to obtain sufficient appropriate audit evidence is impaired, which increases the risk of material misstatement in the financial statements. The other scope limitations listed are also important, but they may be mitigated by alternative audit procedures or disclosures in the financial statements.

Which of the Following Scope Limitations Would Ordinarily Be of Most