A nonpublic client has provided required supplementary information with its audited financial statements. The auditor's proper reporting responsibility includes:
A) An emphasis-of-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 auditing standards, if the auditor concludes that the required supplementary information is fairly presented in relation to the financial statements as a whole, but the information requires additional explanation to be fully understood, an emphasis-of-matter paragraph should be added to the audit report. This paragraph should describe the nature of the required supplementary information and refer to the note that presents the additional required information.

A Nonpublic Client Has Provided Required Supplementary Information with Its