When reporting on financial statements that include only summarized totals of account balances, the auditors' conclusion should state whether the information in the summary financial statements
A)is complete with respect to disclosures required by the SEC.
B)is fairly stated, in all material respects, in accordance with generally accepted accounting principles.
C)is consistent, in all material respects, with the prior years' summary financial statements.
D)is fairly stated, in all material respects, in relation to the complete financial statements.

Question

Quizplus · Accepted Answer

When reporting on financial statements that only include summarized totals of account balances, the auditors' conclusion should state whether the information is fairly stated, in all material respects, in relation to the complete financial statements. This is because the summary financial statements do not contain all of the information that would be included in the complete financial statements and therefore must be judged in relation to them. The conclusion does not need to address SEC disclosures or consistency with prior years' summary financial statements.

When Reporting on Financial Statements That Include Only Summarized Totals