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Hi Tutor,
If there is limitation on scope due to continuos strike of workers at the factory and the auditors could not gather sufficient appropriate audit evidence, how would it impact the audit opinion?
Thanks.
If the auditor cannot obtain sufficient audit evidence on a matter that is material, the audit opinion is qualified “except for” – e.g. if it was not possible to attend the y/e physical inventory count (or there was no count) and there were not other procedures to obtain sufficient evident regarding inventory quantities that forms the basis of the inventory valuation in the financial statements.
I do not know how you are imaging a strike at a factory imposes a limitation on scope – I would expect most audit evidence to be found in a separate accounts department.
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