An auditor may report on condensed financial statements that are derived from complete audited financial statements if the:

Question

Quizplus · Accepted Answer

Choice "A" is correct. When reporting on condensed financial statements that are derived from complete audited financial statements, the auditor should indicate in his report whether the information in the condensed financial statements is fairly stated in all material respects (in relation to the basic financial statements taken as a whole). Choices "B" and "D" are incorrect. There is no requirement that the condensed financial statements be presented in comparative form, or that they be distributed only to management and the board of directors (i.e., distribution is not restricted). Choice "C" is incorrect. The auditor would not perform or describe additional review procedures related to the condensed financial statements.

An Auditor May Report on Condensed Financial Statements That Are