What does the term "scope of work" refer to in an audit?

The term "scope of work" in an audit refers to the specific procedures and tasks that auditors are required to perform during the audit engagement. This encompasses a clear definition of what the audit will assess, the evidence to be collected, the methodologies to be employed, and the objectives to be achieved. By defining the scope of work, auditors can ensure that all relevant areas are examined, and the audit meets its purpose effectively.

Establishing a detailed scope is crucial to managing expectations among stakeholders, aligning audit efforts with risk assessments, and ensuring compliance with applicable standards. This clarity allows auditors to focus their efforts and resources on critical areas, ensuring that the audit is both efficient and effective in delivering the required assurance.

In contrast, while boundaries and limitations of an audit engagement and resource allocations are crucial aspects of the overall audit process, they do not directly define the specific tasks and procedures the auditors will undertake. Similarly, a schedule for completing an audit relates to timing rather than the scope of the work itself. Therefore, option B captures the essence of what "scope of work" entails.