When other information is presented in a document with audited financial statements,the auditors' report should
A)State that the auditor read the other information for inconsistencies and misstatements with the financial statements and identified no discrepancies.
B)Provide limited assurance as to whether the other information is presented in accordance with generally accepted accounting principles.
C)Reference the other information only if inconsistencies or material misstatements are identified between this information and the financial statements.
D)Be expanded to express an opinion that the other information is consistent with the financial statements and not materially misstated.

Question

Quizplus · Accepted Answer

According to AU-C Section 720, the auditor's responsibility is limited to reading the other information and considering whether it contains precisely stated factual information and is otherwise appropriate in relation to the financial statements. If the auditor identifies inconsistencies or material misstatements in the other information, the auditor should communicate the matter to management and request appropriate revisions. Therefore, the auditors' report should only reference the other information if inconsistencies or material misstatements are identified between this information and the financial statements.

When Other Information Is Presented in a Document with Audited