Certified Financial Services Auditor (CFSA) — Question 1

Which of the following is a limitation in an audit that affects auditors’ ability to detect material misstatements?

Answer options

• A. Scope of an audit
• B. The use of testing
• C. Over- generalization
• D. Unidentifiable risks

Correct answer: B

Explanation

The correct answer is B, as the use of testing can limit the extent to which all potential misstatements are identified. While the scope of an audit (A), over-generalization (C), and unidentifiable risks (D) can pose challenges, they do not directly impact the effectiveness of the testing process in the same way.