> For the complete documentation index, see [llms.txt](https://finspectors.gitbook.io/finspectors-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://finspectors.gitbook.io/finspectors-documentation/audit-modules-auditor-view/planning/scoping.md).

# Scoping

## **Overview**

The Scoping module helps auditors determine which Financial Statement Line Items (FSLIs) should be included in the audit scope.

Finspectors automatically evaluates each FSLI using:

* Performance Materiality (PM)
* Final Assessed Risk from Risk Assessment

Based on these factors, the system recommends whether an FSLI should be scoped in or scoped out.

***

## **How Scoping Works**

An FSLI is automatically scoped if:

* The balance exceeds **Performance Materiality**, or
* The assessed risk level is **High**

This helps auditors focus audit effort on:

* Material balances
* Higher-risk areas
* Accounts requiring deeper testing

***

## **What You Will See**

For each FSLI, the table displays:

* FSLI name
* Balance amount
* Final assessed risk
* Scope status
* Reason for status

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## **Automatic Scoping Logic**

The system provides a recommended scoping decision using:

* Materiality thresholds
* Risk assessment results

Examples:

* “Balance exceeds materiality”
* “Risk score is High”
* “Below materiality and medium risk”

These explanations help auditors understand why an account was scoped in or out.

***

## **Auditor Override & Justification**

Auditors can:

* Manually scope in or scope out any FSLI
* Override the system recommendation
* Provide a justification for the change

This ensures professional judgment remains part of the process.

Examples of overrides may include:

* Account reviewed elsewhere
* Low audit relevance
* Specific management considerations
* Additional planned procedures outside the platform

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## **Available Filters**

Auditors can filter the table by:

* High-risk items
* Scoped accounts
* Significant balances
* Specific FSLIs

This makes review and navigation easier for larger engagements.

***

## **Final Action**

Once the scoping review is complete:

* Review all scoped FSLIs
* Confirm any overrides and justifications
* Click **Submit** to finalize scoping

The finalized scope is then used for:

* Sampling
* Execution procedures
* Audit planning
* Review prioritization

{% embed url="<https://demo.finspectors.ai/demo/cmpjk0by01oweqms9be37j8oy?utm_source=link>" %}