Which of the following is true with respect to the auditors' report on condensed financial statements?
A)Auditors can only issue a report on condensed financial statements if they have expressed an unqualified opinion on the full financial statements.
B)The report will indicate whether the condensed financial statements are fairly stated in relation to the full financial statements.
C)The report will express limited assurance on whether the condensed financial statements are prepared in accordance with AICPA presentation guidelines.
D)The report will express an opinion on whether the condensed financial statements present the financial condition, results of operations, and cash flows in accordance with generally accepted accounting principles.

Question

Quizplus · Accepted Answer

The auditors' report on condensed financial statements will indicate whether the condensed financial statements are fairly stated in relation to the full financial statements. Option A is incorrect as auditors may issue a report on condensed financial statements without expressing an opinion on the full financial statements. Option C is incorrect as the report expresses a conclusion on whether the condensed financial statements are presented in accordance with the AICPA presentation guidelines. Option D is incorrect as the report does not express an opinion on whether the condensed financial statements are presented in accordance with generally accepted accounting principles.

Which of the Following Is True with Respect to the Auditors