A scope limitation is a restriction on the applicability of an auditor's report that may arise from the inability to obtain sufficient appropriate evidence about a component in the financial statements. When all the audit procedures that are considered necessary, either by circumstances, engagement, or client limitation, the audit is limited in scope.
Examples of limitations
• End of period inventory count limited, because the auditor is not engaged until after the end of the period. • client's restriction on contact with customers to confirm the existence of accounts receivable. • Disappearance of relevant evidentiary matter The scope limitation should be described before the opinion or disclaimer paragraph. ==References==