A Limitation on the Scope of an Audit Sufficient to Preclude

Multiple Choice

A limitation on the scope of an audit sufficient to preclude an unqualified opinion will usually result when management:

A) Is unable to obtain audited financial statements supporting the entity's investment in a foreign subsidiary.
B) Refuses to disclose in the notes to the financial statements related party transactions authorized by the Board of Directors.
C) Does not provide the auditor with an engagement letter specifying the responsibilities of both the entity and the auditor.
D) Fails to correct a significant deficiency in internal control communicated to those charged with governance after the prior year's audit.