Lesson 8

Lesson 8 - Name: Jay Patadia Enrollment Number: 688430...

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Name: Jay Patadia Enrollment Number: 688430 Course Number: ACCT 3222Z Lesson 8 (18) 18-3 Give example of client – imposed and condition - imposed scope limitation. Why is a client – imposed limitation generally considered more serious? An example of a client-imposed scope limitation is where a client requests that the auditor not confirm accounts receivable because of concerns about creating conflicts with customers over amounts owed. An example of a condition-imposed scope limitation is when the auditor is not engaged to conduct the audit until after year-end. Under such circumstances, the auditor may not be able to observe inventory. Auditors should be particularly cautious when a client places a limit on the scope of the engagement because the client may be trying to prevent the auditor from discovering material misstatements. Auditing standards suggest that when restrictions imposed by the client significantly limit the scope of the engagement, the auditor should disclaim an opinion on
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This note was uploaded on 03/04/2012 for the course AUD 3222 taught by Professor Na during the Spring '12 term at LSU.

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Lesson 8 - Name: Jay Patadia Enrollment Number: 688430...

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