What is a 'scope limitation' in an audit?

A 'scope limitation' in an audit refers to restrictions that prevent auditors from obtaining necessary information to perform a complete audit. This may occur due to various factors, such as management not providing access to key documents, the inability to observe certain events, or restrictions placed by regulatory bodies that hinder the auditor's ability to gather sufficient appropriate evidence.

When auditors face a scope limitation, it can significantly impact their evaluation of the financial statements, possibly leading to a qualified opinion or a disclaimer of opinion, depending on the severity of the limitation and its effect on the audit. Thus, understanding scope limitations is crucial for both auditors and stakeholders, as it can influence the reliability of the audit findings.

In contrast, other options do not accurately capture the definition of 'scope limitation.' While some may mention aspects of auditing, they do not relate directly to the fundamental concept of restrictions on information access during an audit process.