25. When an auditor encounters pervasively material scope limitation in an audit

Question

25. When an auditor encounters pervasively material scope limitation in an audit, which of the following is not an appropriate change to the audit report? a. Substitute "We have audited " with "We were engaged to audit.." in the introductory paragraph of the audit report. b. Explain the pervasively material scope limitation in the scope paragraph of the audit report. c. Add a second paragraph to explain the pervasively material scope limitation in the audit report. d. Delete the scope paragraph from the audit report.

Explanation / Answer

Answer is d. Delete the scope paragraph from the audit report.

Explanation:

Auditor should mention the limited scope of his audit in the scope paragraph of the audit report clearly define the actions taken in the audit and various limitation which has been encountered during the audit.

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