Which item is listed as a consequence or recommendation for addressing scope limitations?

• A. Communicate policy to staff.
• B. Audit fee reductions.
• C. Outsourcing the audit function.
• D. Hire a new audit committee.

Answer: (A)

When auditors can’t obtain enough appropriate evidence, the remedy is to remove barriers to access and ensure everyone knows what’s expected. Communicating policy to staff directly tackles this by making clear how records should be accessed, what documentation is needed, timelines, and cooperation required. This helps prevent vague or conflicting practices that can cause scope limitations and facilitates the collection of sufficient evidence.

The other choices don’t address the core issue. Reducing audit fees won’t overcome access or documentation problems. Outsourcing the audit function doesn’t fix the practical barriers to obtaining evidence. Hiring a new audit committee may improve governance, but it doesn’t directly resolve the methods or permissions needed to obtain sufficient evidence.