What Is the Auditors' Responsibility for Reporting on Other Information

question 55

Multiple Choice

What is the auditors' responsibility for reporting on other information accompanying financial statements?

• A)Because this information is not a fundamental part of the financial statements, the auditors have no reporting responsibility with respect to this information.
• B)Auditors are required to report on the consistency of other information with the audited financial statements.
• C)Auditors are required to provide reasonable assurance with respect to whether the other information is presented in accordance with generally accepted accounting principles.
• D)Auditors are required to express an opinion on whether the other information is presented in accordance with generally accepted accounting principles.

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Definitions:

Opportunities And Threats

External factors in the environment that an organization can exploit for its advantage (opportunities) or that could cause harm if not addressed (threats).

Environmental Conditions

The state of the physical surroundings within which an organization operates, including climate, natural disasters, and pollution levels.

Values

The basic beliefs that govern individual and group behaviour in an organization.

Behaviour

Refers to the actions or reactions of an individual or group in response to external or internal stimuli.