An auditor may report on summary financial statements that are derived from a complete set of audited financial statements only if the auditor
A) expresses an unmodified opinion on the audited financial statements from which the summary financial statements are derived.
B) indicates whether the information is fairly stated in all material respects in relation to the complete financial statements.
C) determines that the summary financial statements include all the disclosures necessary for the complete set of financial statements.
D) presents the summary financial statements in comparative form with the prior-year summary financial statements.

Question

Quizplus · Accepted Answer

An auditor may report on summary financial statements that are derived from a complete set of audited financial statements only if the auditor indicates whether the information is fairly stated in all material respects in relation to the complete financial statements. This is known as a limited assurance report. The auditor does not express an opinion on the complete set of financial statements, but only reports on the summary financial statements. The auditor must also determine that the summary financial statements include all the disclosures necessary for the complete set of financial statements. The presentation of the summary financial statements in comparative form with the prior-year summary financial statements is not a requirement for the auditor's report on summary financial statements.

An Auditor May Report on Summary Financial Statements That Are