When an auditor reports on a financial report summarising its annual audited financial report, the auditor's report should:
A) not express an opinion on whether the report is presented in conformity with the comprehensive basis of accounting used.
B) disclose that the report is not intended to conform with generally accepted accounting principles.
C) disclaim an opinion on whether the report was examined in accordance with generally accepted auditing standards.
D) include an explanation of how the results of operations differ from the cash receipts and disbursements basis of accounting.

Question

Quizplus · Accepted Answer

The auditor's report should disclose that the summary financial report is not intended to conform with generally accepted accounting principles (GAAP). This is because the summary financial report is a condensed version of the full financial report and may not include all the detailed information required by GAAP.

When an Auditor Reports on a Financial Report Summarising Its