The auditors' best course of action with respect to "other information (not including required supplemental information)" included in an annual report containing the auditors' report is to:
A)Indicate in the auditors' report,that the "other financial information" is only compiled.
B)Consider whether the "other financial information" is accurate by performing a limited review.
C)Obtain written representations from managements as to the material accuracy of the "other financial information."
D)Read and consider the manner of presentation of the "other financial information."

Question

Quizplus · Accepted Answer

The best course of action for auditors with respect to "other information" included in an annual report is to read and consider the manner of presentation of the information. They should review and assess whether it is consistent with the auditor's knowledge of the entity and whether it appears materially misstated or inconsistent with the financial statements. However, they are not required to perform additional audit procedures or provide assurance on the accuracy of the "other information." Therefore, options A, B, and C are not the best choices.

The Auditors' Best Course of Action with Respect to "Other