Scoping

Which of the following is true about Scoping?

• It is only done at Planning Stage
• It is only done at Risk Assessment Stage
• It is continuously visited throughout the audit
• None of the above

Which of the following is a type of Scoped item?

• SCOT+
• Material Only
• General Ledger Account
• Out of Scope
• All of the Above

Which of the following is a reason why an item shall be scoped into the audit at a later stage

• Changes in conditions
• Immaterial Misstatement has been found in another area
• Audit Deadline is coming up
• None of the Above

What are Significant classes of transactions, account balances, and disclosures (SCOT+) items?

• Items that are 200% above materiality
• Those items which are associated with risks of material misstatement
• Item below materiality
• Items that the management thinks are important

Which is not an assertion selected for an FSLI that is scoped in?

• Completeness
• Accuracy
• Existence
• Material

Identifying and assessing the risks of material misstatement at the assertion level involves?

• Recomputing interest
• Assessing inherent risk
• Checking Agreements
• None of the Above

If materialty is $1 Million, revenue of $800,000 is scoped as which of the following?

• Out of Scope
• Not Material
• SCOT+
• Other GL Account
• None of the Above

How does scoping help auditors in planning the audit?

• By identifying areas that require further investigation
• By setting the materiality threshold for the audit
• By determining the audit timeline
• By preparing financial statements

What is the significance of SCOT+ items in scoping?

• They are items that are below materiality
• They are items that are 200% above materiality
• They are items associated with risks of material misstatement
• They are items that management deems unimportant