A scope limitation sufficient to preclude an unqualified opinion always will result when management
A) Prevents the auditor from reviewing the working papers of the predecessor auditor.
B) Engages the auditor after the year-end physical inventory is completed.
C) Requests that certain material accounts receivable not be confirmed.
D) Refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with GAAP.

Question

Quizplus · Accepted Answer

When management refuses to provide a representation letter, the auditor is unable to obtain sufficient appropriate audit evidence to support the financial statements. As a result, a scope limitation exists, and an unqualified opinion cannot be given.

A Scope Limitation Sufficient to Preclude an Unqualified Opinion Always