I am trying to understand the scope of approval portion of AS9100 section 4.6, 04. Could someone explain what is meant by scope of approval?

I am assuming that you are looking at the AS 9101 document, section 4.6.2, question 04?

"Does the supplier maintain a list of approved subcontractors and specify the scope of approval?"

I believe that it is requiring you to maintain an approved supplier/subcontractor listing (the results of your selection/approval/surveillance process) and that this listing must specifiy what they are allowed to supply in the way of products and/or services. As an example, just because a subcontractor is approved to supply you with nuts and bolts does not mean that you can use them as a plating or testing source unless their scope of approval includes those services too.

Hope this helps.

Does anyone else have a different interpretation?

yes badger , you are right.