An Auditor Is Engaged to Report on Selected Financial Data

question 896

Multiple Choice

An auditor is engaged to report on selected financial data that are included in a client-prepared document containing audited financial statements. Under these circumstances, the report on the selected data should:

• A) Be limited to data derived from the audited financial statements.
• B) Be distributed only to senior management and the board of directors.
• C) State that the presentation is a comprehensive basis of accounting other than GAAP.
• D) Indicate that the data are not fairly stated in all material respects.

---

Definitions:

Sternberg

Refers to Robert Sternberg, a psychologist known for his triarchic theory of intelligence, which includes analytical, creative, and practical dimensions.

Performance Tests

Evaluations based on task or skill execution rather than answers to written questions, typically measuring competence in specific areas.

Achievement Tests

Assessments designed to measure an individual's knowledge or proficiency in a particular area or subject.

IQ Tests

Standardized assessments designed to measure human intelligence.