When unaudited financial statements are presented in comparative form with audited financial statements in a document filed with the Securities and Exchange Commission, such statements should be:

Question

Quizplus · Accepted Answer

Choice "A" is correct. When unaudited financial statements (generally the first quarter of the following year in an annual report) are presented in comparative form with audited financial statements in documents filed with the SEC, such statements should be clearly marked as "unaudited," but should not be referred to in the auditor's report. The statements need not be withheld until audited. Choices "B", "C", and "D" are incorrect, based on above.

When Unaudited Financial Statements Are Presented in Comparative Form with Audited