A nonpublic client has provided required supplementary information with its audited financial statements.The auditor's proper reporting responsibility includes:
A)other-matter paragraph should be added to the audit report.
B)A separate report should be issued on the required supplementary information.
C)An adverse opinion on the required supplementary information.
D)The required supplementary information should not be referred to.

Question

Quizplus · Accepted Answer

According to the Generally Accepted Auditing Standards (GAAS), the auditor's responsibility for required supplementary information is to perform limited procedures to ensure it is presented fairly in relation to the financial statements as a whole. A required other-matter paragraph should be added to the audit report to indicate that the required supplementary information is present and that the auditor performed limited procedures on it. An adverse opinion is not appropriate unless the required supplementary information is materially misstated, and a separate report is not required. Therefore, the best choice is option A.

A Nonpublic Client Has Provided Required Supplementary Information with Its