Give your comments on the following. Mr. Lakhan, Statutory Auditor of Radha Krishna Pvt. Ltd wants to verify cash on hand as on 31st Aasadh, 2069. The Management informs Mr. Lakhan that it is not possible to cooperate, as cashier has been out of station. Advise Mr. Lakhan on how to deal with the situation.

Auditing and Assurance Revision Questions and Answers

The scope of audit may be limited for varied reasons:
 the entity may impose restriction on scope of audit,
 the limitation may be imposed circumstances.
When the audit is carried out under and as per statute, the auditor should not accept the assignment when his duties are curtailed agreement, unless required any Law.
When audit is carried out in accordance with the entity‟s terms voluntarily, the auditor may indicate his scope in his audit report. Sometimes, the circumstances may impose restrictions on audit scope. For example, if the auditor is appointed after the year end, he may not be able to participate in inventory checking. Or sometimes, the records required may not be available so that the auditor may not be able to check details in the manner he liked. Such limitations in scope may warrant an auditor to express disclaimer of opinion or qualified opinion in his audit report depending upon the circumstances.
The non-co-operation of Radha Krishna Pvt. Limited will amount to limitation on scope of auditors.



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