A limitation on the scope of an audit sufficient to preclude an unqualified opin

Question

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

a. Presents financial statements that are prepared in accordance with the cash receipts and disbursements basis of accounting.

b. States that the financial statements are not intended to be presented in conformity with generally accepted accounting principles.

c. Does not make the minutes of the board of directors’ meetings available to the auditor.

d. Asks the auditor to report on the balance sheet and not on the other basic financial statements.

please explain the answer if possible

Explanation / Answer

The correct option is

c. Does not make the minutes of the board of directors’ meetings available to the auditor.

A limitation on the scope of an audit sufficient to preclude an unqualified opinion will usually result when management does not make the minutes of the board of directors meeting available for auditor because it is necessary to prepare the minutes of the board of directors and it should be duly signed.

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